Q1 2016 Press Presentation | Page 1 | February 25, 2016 | May 3, - - PowerPoint PPT Presentation

▶
q1 2016
SMART_READER_LITE
LIVE PREVIEW

Q1 2016 Press Presentation | Page 1 | February 25, 2016 | May 3, - - PowerPoint PPT Presentation

Dec 28, 2022 312 likes •718 views

May 3, 2016 Q1 2016 Press Presentation | Page 1 | February 25, 2016 | May 3, 2016 Q1 2016 At a Glance Thomas Ebeling Chief Executive Officer | Page 2 | February 25, 2016 | 1 2 3 4 Q1 2016 At a Glance Key financials in Q1 2016 [Q1

slide-1
SLIDE 1

| Page 1 | February 25, 2016 |

May 3, 2016

Q1 2016

Press Presentation

slide-2
SLIDE 2

| Page 2 | February 25, 2016 |

May 3, 2016

Q1 2016

At a Glance

Thomas Ebeling Chief Executive Officer

slide-3
SLIDE 3

| Page 3 | May 3, 2016 | | Page 3 | May 3, 2016 |

Key financials in Q1 2016

Continuing operations

[Q1 2016 vs. Q1 2015; in EUR m]

Revenues Recurring EBITDA Underlying net income

✔ ✔ ✔

802 170 76

+22% +12% +8%

1 2 3 4

Q1 2016 – At a Glance

slide-4
SLIDE 4

| Page 4 | May 3, 2016 | | Page 4 | May 3, 2016 |

Continued dynamic growth across all three business segments

Continuing operations, external revenues.

Content Production & Global Sales +EUR 17m

Revenue growth

  • vs. Q1 2015

Broadcasting German-speaking

Distribution TV advertising

+4% +14% +EUR 23m +5% Digital & Adjacent

Digital Entertainment Ventures & Commerce Adjacent

+66% +110%

  • 44%

+EUR 103m +75% +38%

1 2 3 4

Q1 2016 – At a Glance

slide-5
SLIDE 5

| Page 5 | May 3, 2016 | | Page 5 | May 3, 2016 |

2018 Group revenue growth target

1 2 3 4

Q1 2016 – At a Glance

1,926 335 95 2,356 2,175 950 280 3,408 2,301 1,535 370 4,206 Broadcasting German- speaking Digital & Adjacent Content Production & Global Sales ProSiebenSat.1 Group

57%

+EUR 375m +EUR 1,200m +EUR 275m +EUR 1,850m >30% 15-20% ≥10% ~26.0%

2012-18 revenue growth target

[in EUR m, degree of achievement]

66% 51% 67%

745 943 1,095 Group rec. EBITDA

57%

2018 revenue growth target

  • Rec. EBITDA margin profile 2018E

Degree of achievement

  • Rec. EBITDA growth target

[in EUR m, degree of achievement]

2018 target 2012 Q1 2016 (LTM)

slide-6
SLIDE 6

| Page 6 | February 25, 2016 |

May 3, 2016

Q1 2016

Financial Performance Review

  • Dr. Gunnar Wiedenfels

Chief Financial Officer

slide-7
SLIDE 7

| Page 7 | May 3, 2016 | | Page 7 | May 3, 2016 | Continuing operations

500 1,000 50 100 150 200

170 153 +22% Q1 2016 655 802 Q1 2015

Consolidated revenues [in EUR m] Recurring EBITDA [in EUR m]

Q1 2016 Q1 2015 Recurring EBITDA margin: 21% (-2%pts) +12%

Q1 2016: dynamic revenue and recurring EBITDA increase

1 2 3 4

Q1 2016 – Financial Performance Review

slide-8
SLIDE 8

| Page 8 | May 3, 2016 | | Page 8 | May 3, 2016 |

Q1 2016: Group revenue growth driven by all segments

Continuing operations

Broadcasting German-speaking Key Group revenue growth drivers vs. PY [Q1 2016 external revenues; growth rates in %] Digital & Adjacent Content Production & Global Sales TV advertising EUR 454m, +4% Digital Entertainment EUR 86m, +66% Red Arrow EUR 63m, +38% Distribution EUR 29m, +14% Ventures & Commerce EUR 146m, +110% Adjacent EUR 9m, -44% EUR 493m, +5% EUR 242m, +75% EUR 63m, +38%

1 2 3 4

Q1 2016 – Financial Performance Review

slide-9
SLIDE 9

| Page 9 | May 3, 2016 | | Page 9 | May 3, 2016 |

Q1 2016: high single-digit underlying net income growth

Continuing operations

  • 50
  • 25

25

  • 24
  • 28
  • 17%

Financial result [in EUR m]

Q1 2016 Q1 2015

20 40 60 80 100

+8% Q1 2016 76 Q1 2015 70

Underlying net income [in EUR m]

1 2 3 4

Q1 2016 – Financial Performance Review

slide-10
SLIDE 10

| Page 10 | May 3, 2016 | | Page 10 | May 3, 2016 | Continuing operations; recurring EBITDA on entity basis.

External revenues and recurring EBITDA [in EUR m]

Broadcasting German-speaking: continued solid revenue and recurring EBITDA improvement

Q1 2016 Q1 2015 y-o-y Comments

  • Ext. revenues

493 471 +5% TV advertising business benefitted from continued positive advertising environment and minor positive effect due to earlier Easter. Distribution revenues again driven by continued strong demand for HD channels as well as increased mobile revenues. TV advertising 454 437 +4% Distribution 29 26 +14%

  • Rec. EBITDA

131 126 +4%

  • Rec. EBITDA increase almost in line with

revenue growth.

1 2 3 4

Q1 2016 – Financial Performance Review

slide-11
SLIDE 11

| Page 11 | May 3, 2016 | | Page 11 | May 3, 2016 |

External revenues and recurring EBITDA [in EUR m]

Digital & Adjacent: successful acquisitions drive segment revenue and recurring EBITDA

Q1 2016 Q1 2015 y-o-y Comments

  • Ext. revenues

242 138 +75% Dynamic revenue growth in Digital Entertainment and Ventures & Commerce primarily driven by consolidation effects as well as strong growth

  • f

maxdome. Adjacent affected by missing live events with former ProSieben host Stefan Raab and slow-down in Live Entertainment. Digital Entertainment 86 52 +66% Ventures & Commerce 146 70 +110% Adjacent 9 17

  • 44%
  • Rec. EBITDA

35 27 +29% Rec. EBITDA increase below revenue growth partly due to strong growth of lower-margin businesses.

1 2 3 4

Q1 2016 – Financial Performance Review

Continuing operations; recurring EBITDA on entity basis.

slide-12
SLIDE 12

| Page 12 | May 3, 2016 | | Page 12 | May 3, 2016 |

External revenues and recurring EBITDA [in EUR m]

Content Production & Global Sales: continued double-digit revenue growth and notably improved profitability

Q1 2016 Q1 2015 y-o-y Comments

  • Ext. revenues

63 46 +38% Continued solid revenue growth mainly driven by US production business as well as Red Seven Entertainment. Positive consolidation effects from the acquisition

  • f Karga Seven and Dorsey Pictures.

Total revenues 76 56 +37%

  • Rec. EBITDA

5 1 >100% Solid rec. EBITDA margin well above prior year.

1 2 3 4

Q1 2016 – Financial Performance Review

Continuing operations; recurring EBITDA on entity basis.

slide-13
SLIDE 13

| Page 13 | May 3, 2016 | | Page 13 | May 3, 2016 |

Q1 2016: Group P&L – improvement of all key metrics

Continuing operations; 1) Result for the period attributable to shareholders of ProSiebenSat.1 Media SE.

[in EUR m] Q1 2016 Q1 2015 Δ Revenues 802 655 +22% Recurring EBITDA 170 153 +12% Non-recurring items

  • 9
  • 7

+25% Thereof M&A-related

  • 3
  • 1

+127% EBITDA 162 146 +11% Depreciation and amortization

  • 39
  • 29

+37% Thereof PPA

  • 10
  • 4

>+100% Operating result (EBIT) 122 117 +5% Financial result

  • 24
  • 28
  • 17%

Thereof interest result

  • 26
  • 21

+20% Earnings before tax (EBT) 99 89 +11% Net income1) 66 61 +9% Underlying net income 76 70 +8%

1 2 3 4

Q1 2016 – Financial Performance Review

slide-14
SLIDE 14

| Page 14 | May 3, 2016 | | Page 14 | May 3, 2016 | Financial leverage: Net debt/LTM rec. EBITDA (LTM rec. EBITDA of EUR 943m (previous year: EUR 860m) for continuing

  • perations); 1) Mainly repayment of finance lease liabilities, dividend payments to non-controlling interests, payments for

businesses without change in control and financing costs.

Financial leverage at the end of Q1 2016 well inside target range

  • f 1.5-2.5x net debt to recurring EBITDA

1,500 342 609 26 523 1,953

500 1,000 1,500 2,000 2,500 31/03/2015 2014 dividend payment M&A spend Other FCF before M&A 31/03/2016

Net debt [in EUR m] M&A spend to a large extent covered by strong FCF generation from

  • perating activites of

>EUR 500m (LTM)

Net financial debt

Financial leverage

1.7x 2.1x

1)

1 2 3 4

Q1 2016 – Financial Performance Review

slide-15
SLIDE 15

| Page 15 | May 3, 2016 | | Page 15 | May 3, 2016 |

Financial outlook for 2016

Financial leverage 1.5x – 2.5x Recurring EBITDA above prior year Underlying net income above prior year Group revenue growth (in %) >+10%

1 2 3 4

Q1 2016 – Financial Performance Review

slide-16
SLIDE 16

| Page 16 | February 25, 2016 |

May 3, 2016

Broadcasting German-speaking & Red Arrow

Thomas Ebeling Chief Executive Officer

slide-17
SLIDE 17

| Page 17 | May 3, 2016 | | Page 17 | May 3, 2016 |

Germany with slower start while Austria performs strongly

Basis for GER: All German TV households (GER+EU/German-speaking), A 14-49; Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; Basis for A: A 12-49; Mon-Sun, 3-3 h, incl. P7 MAXX Austria and S1 Gold Austria (from Jul 15, 2014 onwards); Basis for CH: D-CH; A 15-49; Mon-Sun, 3-3 h, incl. PULS 8 (from Oct 08, 2015 onwards); Source: Mediapulse TV-Panel. Source: AGTT / GfK: Fernsehforschung / Evogenius Reporting.

1 2 3 4

Broadcasting German-speaking & Red Arrow

Switzerland

(A 15-49)

Austria

(A 12-49)

Germany

(A 14-49)

Q1 2016 18.2% 28.1% 23.5%

Audience share [in %]

Q1 2015 18.3% 28.9% 21.5%

slide-18
SLIDE 18

| Page 18 | May 3, 2016 | | Page 18 | May 3, 2016 |

We see an upward trend from February onwards …

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.

Audience share development Germany (A 14-49)

[in %]

28.8 +1.1 +0.4

March 2016 January 2016 February 2016

27.3 28.4

1 2 3 4

Broadcasting German-speaking & Red Arrow

slide-19
SLIDE 19

| Page 19 | May 3, 2016 | | Page 19 | May 3, 2016 |

Audience share (A 14-49)1) Share of advertising2)

… and maintain our leading position in the German market

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 with GfK / TV Scope / ProSiebenSat.1 TV Deutschland. 2) Gross values; Source: Nielsen Media Research / SevenOne Media, Sales Steering & Market Insights.

[Q1 2016; in %] [Q1 2016; in %]

25.5 28.1 33.5 42.4

1 2 3 4

Broadcasting German-speaking & Red Arrow

+8.9 ∆

%pts

+2.6 ∆

%pts

slide-20
SLIDE 20

| Page 20 | May 3, 2016 | | Page 20 | Page 20 | May 3, 2016 | Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; 1) Red Arrow Entertainment Group share of absolute number of new commissioned formats in 2015; 2) 2016; 3) 2015.

RA already contributes >20% of our new local commissions

Married At First Sight

Examples of successful local in-house formats in German Free TV

The Taste Kiss Bang Love Up to 12.2%3) Up to 10.7%3)

>20%

  • f commissioned

new launches come from Red Arrow1) Up to 14.1%2)

Audience share [A 14-49; in %] 1 2 3 4

Broadcasting German-speaking & Red Arrow

slide-21
SLIDE 21

| Page 21 | May 3, 2016 | | Page 21 | May 3, 2016 |

Broadcasting German-speaking & Red Arrow: outlook 2016

Focus on core channels ProSieben and Sat.1 Launch new docu/factual channel to broaden portfolio Leverage TVD - Red Arrow relationship for content creation

1 2 3

1 2 3 4

Broadcasting German-speaking & Red Arrow

slide-22
SLIDE 22

| Page 22 | February 25, 2016 |

May 3, 2016

Broadcasting German-speaking

Ad Market Performance

Thomas Ebeling Chief Executive Officer

slide-23
SLIDE 23

| Page 23 | May 3, 2016 | | Page 23 | May 3, 2016 |

Positive development in Q1 2016

1) Source: Nielsen Media Research; Note: gross figures excl. YouTube and Facebook.

1 2 3 4

Broadcasting German-speaking / Ad Market Performance

Continued positive pricing development

✔

Growing number of addressable TV campaigns

✔

P7S1 German-speaking TV net advertising revenue growth of +4%

✔

Continued increase of TV share in media mix1)

✔

slide-24
SLIDE 24

| Page 24 | May 3, 2016 | | Page 24 | May 3, 2016 |

Advertising share in German-speaking markets

Basis: Q1 2016; Source: Nielsen Media Research / Media Focus. | Page 24

1 2 3 4

Broadcasting German-speaking / Ad Market Performance

| Page 24

Switzerland Austria Germany

ProSiebenSat.1 gross TV ad market share [in %]

Q1 2015 29.0% 43.6% 35.7% Q1 2016 28.0% 42.4% 36.3%

slide-25
SLIDE 25

| Page 25 | May 3, 2016 | | Page 25 | May 3, 2016 | Basis: Q1 2016; Source: Nielsen Media Research. Online excl. search, affiliate and others not reporting their bookings to Nielsen (e.g. YouTube, Facebook).

TV continues to benefit at the expense of other media

1 2 3 4

Broadcasting German-speaking / Ad Market Performance

Gross ad spendings, Germany [Q1 2016 vs. Q1 2015; in % and %pts] Outdoor, Cinema Magazines Newspapers Radio TV Total Online

  • 0.9%pts
  • 0.4%pts
  • 0.9%pts

+1.5%pts 100.0% 47.7% 10.4% 6.1% 16.6% 12.8% 6.4% Share of segment Change in media mix +0.6%pts +0.1%pts

slide-26
SLIDE 26

| Page 26 | May 3, 2016 | | Page 26 | May 3, 2016 |

Innovation leader in HbbTV-enabled addressable TV ad business

1 2 3 4

Broadcasting German-speaking / Ad Market Performance

Walt Disney Opel Lexus Canon Electronic Arts Tirol Ferrero Eurowings E WIE EINFACH

20

campaigns

12 clients in Q1

SwitchIn XXL SwitchIn Spot

  • verlay
slide-27
SLIDE 27

| Page 27 | May 3, 2016 | | Page 27 | May 3, 2016 |

Solid single-digit net TV ad market growth forecast

Source: Warc International Ad Forecast 2015/2016 (Dec. 2015); ZenithOptimedia Advertising Expenditure Forecasts (Mar. 2016); Magna Global (Broadcast TV, Dec. 2015); SevenOne Media own estimate.

1 2 3 4

Broadcasting German-speaking / Ad Market Performance

+2-3%

German net TV ad market estimates 2016

+4.3% +2.5%

ProSiebenSat.1 internal market estimate

+4.3%

slide-28
SLIDE 28

| Page 28 | February 25, 2016 |

May 3, 2016

Digital & Adjacent

Thomas Ebeling Chief Executive Officer

slide-29
SLIDE 29

| Page 29 | May 3, 2016 | | Page 29 | May 3, 2016 |

Market position

1) Nordics; 2) Studio71 #1 MCN DE, top 5 globally; 3) Yieldlab #1 Premium SSP in DACH; 4) SVoD market DE, according to forsa; 5) Mobile and PC games publishers Europe, excluding direct publishing by developers.

Our market leading D&A portfolio

1 2 3 4

Digital & Adjacent

Digital Entertainment

Games

Top

35)

PayVoD

Top

34)

AdVoD

Ventures & Commerce

Travel

#1 #1

Top

5

Top

5

#1

Ventures

Leading German VC investor (M4R/E)

#1

Adjacent

Music, Artist Mgmt., Licensing

#5

A C B

Beauty & Accessories

Top

5

#2 #2

Online Comparison

Top

5

Q1 revenue split

#2 #1 #12) #1 #13)

Top

3

#11)

36% 4% 60%

#1 #1 #1

Sports

New

slide-30
SLIDE 30

| Page 30 | May 3, 2016 | | Page 30 | May 3, 2016 |

1 2 3 4

Digital & Adjacent

A

Online video advertising market Germany1)

#1

in premium video ad market1)

[in EUR m]

124 88

Q1 2015 Q1 2016

1) Source: Nielsen Media Research, gross in-stream video ad market revenues Germany (without Google/YouTube, Amazon, Facebook and long-tail ad networks 2) Source: AGOF Internet Facts; Jan 2016 LTM vs. Jan 2015 LTM, 10+ 3) Source: Internal data Q1 2016 vs. PY (Studio71 GER only, excl. Studio71 US).

+37%

video unique users2)

+88%

video views in Germany3)

Channel websites Multi-channel network +40%

We maintain #1 position in the German premium video ad market

slide-31
SLIDE 31

| Page 31 | May 3, 2016 | | Page 31 | May 3, 2016 |

Studio71 is a leading MCN in Germany and globally …

1) Source: ComScore YouTube Partners Report Mar 2016 (content views, desktop only, incl. music MCNs, Maker and Fullscreen not listed), Studio71 GER and Studio71 US combined; 2) Source: monthly video views retrieved from company websites, based on SocialBlade “Top 100 YouTube Networks” report (incl. music MCNs).

A

1 2 3 4

Digital & Adjacent

#1 MCN in Germany

ComScore MCN Ranking, March 20161)

Global #5 MCN2)

#1

Warner Music Broadband TV TubeOne Networks VEVO Studio71

slide-32
SLIDE 32

| Page 32 | May 3, 2016 | | Page 32 | May 3, 2016 |

maxdome continues to grow with new distribution platforms

1) End of period Q1 2016 vs. end of period Q1 2015; 2) Q1 2016 vs. Q1 2015; 3) Average of period Q1 2016 vs. average of period Q1 2015; 4) Integration in new Entertain service (Telekom).

1 2 3 4

Digital & Adjacent

A

+83%

SVoD subscribers1)

+32%

Total user base3)

+55%

Total video views2) Top 3 market position New distribution platforms

2.5m

potential households4)

1.4m

potential households

slide-33
SLIDE 33

| Page 33 | May 3, 2016 | | Page 33 | May 3, 2016 |

Outstanding etraveli performance is driving our Travel vertical

1) Business outside Nordics.

1 2 3 4

Digital & Adjacent

C

+84%

y-o-y revenue growth

+85%

growth of international business1)

slide-34
SLIDE 34

| Page 34 | May 3, 2016 | | Page 34 | May 3, 2016 | 1) Q1 2016 vs. Q1 2015 pro-forma revenues.

Online Comparison pushed by Verivox’ record performance in Q1

Market share gains

across all new product categories

Record performance of Verivox in Q1 +38% revenue growth1) C

1 2 3 4

Digital & Adjacent

80%

P7S1 stake

slide-35
SLIDE 35

| Page 35 | May 3, 2016 | | Page 35 | May 3, 2016 |

Digital & Adjacent: outlook

Deliver double-digit revenue growth in FY 2016 Continue bolt-on M&A and evaluate partnerships to further drive growth Further internationalize our digital verticals

1 2 3 4

Digital & Adjacent

3 1 2

slide-36
SLIDE 36

| Page 36 | February 25, 2016 |

May 3, 2016

Q1 2016

Summary & Outlook

Thomas Ebeling Chief Executive Officer

slide-37
SLIDE 37

| Page 37 | May 3, 2016 | | Page 37 | May 3, 2016 |

We confirm our positive full-year guidance

Continuing operations

Recurring EBITDA and underlying net income above prior year

✔

Ad performance in line with positive net TV ad market

✔

Digital & Adjacent with double-digit revenue growth

✔

Group revenue growth to exceed +10%

✔

1 2 3 4

Q1 2016 – Outlook

slide-38
SLIDE 38

| Page 38 | May 3, 2016 | | Page 38 | May 3, 2016 |

Disclaimer

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

  • r 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

  • perations. 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.

slide-39
SLIDE 39

| Page 39 | May 3, 2016 |