The power of television August 4, 2016 Thomas Ebeling, CEO Dr. Gunnar Wiedenfels, CFO Q2/H1 2016 Press Presentation | August 4, 2016 | | Page 1
1 2 3 4 Q2/H1 2016 – At a Glance Key financials in Q2 2016 [Q2 2016 vs. Q2 2015; in EUR m] ✔ +15% Revenues 886 ✔ +7% Recurring EBITDA 254 ✔ +8% Underlying net income 133 | August 4, 2016 | | August 4, 2016 | | Page 2 | Page 2 Continuing operations
1 2 3 4 Q2/H1 2016 – At a Glance Key financials in H1 2016 [H1 2016 vs. H1 2015; in EUR m] ✔ +18% Revenues 1,688 ✔ +9% Recurring EBITDA 424 ✔ +7% Underlying net income 207 | August 4, 2016 | | August 4, 2016 | | Page 3 | Page 3 Continuing operations
1 2 3 4 Q2/H1 2016 – At a Glance 2018 Group revenue growth target and achievement by Q2 2016 2018 Group revenue and recurring EBITDA target 2018 segment revenue targets [in EUR m] [in EUR m] 4,206 3,522 2,356 2,301 2,181 1,926 1,535 1,095 1,029 960 745 370 335 302 95 ProSiebenSat.1 Group Group rec. EBITDA Broadcasting German- Digital & Adjacent Content Production & speaking Global Sales Degree of achievement 1) 63% 61% 68% 58% 75% 58% 58% 58% 58% 58% Pro-rata target +7.4% +5.4% +2.2% +17.3% +8.5% Required CAGR by 2018 2012 Q2 2016 (LTM) 2018 target | August 4, 2016 | | August 4, 2016 | | Page 4 | Page 4 Note: incl. pro-forma consolidation effects; 1) As of Q2 2016
1 2 3 4 Q2/H1 2016 – At a Glance ProSiebenSat.1 is well positioned for future growth Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales TV advertising revenue growth Dynamically increasing digital Growing content library Print to TV media mix shift video consumption Development and distribution Pricing opportunities Strong presence in all key of new innovative formats Addressable TV advertising digital entertainment markets Innovative TV ad products Growing international customer AdVoD/streaming, SVoD, base TVoD, MCN, ad tech/data Distribution revenue growth New commerce ecosystems Increasing number of returning Monetization of HD channels shows across all platforms Leveraging conversion of TV & Mobile/OTT products commerce Successful acquisitions in the New industrial partnerships scripted, non-scripted and Strong M&A track record digital content space Support from very solid macro-economic environment in key markets Germany, Austria and Switzerland | August 4, 2016 | | August 4, 2016 | | Page 5 | Page 5
1 2 3 4 Q2/H1 2016 – At a Glance Strong participation in new P7S1 employee share plan 52% 49% first-time of participants invest participation of maximum amount in eligible employees 1) multi-year share at launch of program MyShares program | August 4, 2016 | | August 4, 2016 | | Page 6 | Page 6 1) Basis: 3,720 employees; 1,823 actually invested an average amount of EUR 691.
1 2 3 4 Q2/H1 2016 – Financial Performance Review Q2 2016: Group revenue growth again driven by all segments Key Group revenue growth drivers vs. PY [Q2 2016 external revenues; growth rates in %] Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales EUR 541m, +1% EUR 263m, +43% EUR 77m, +42% Digital Entertainment EUR 101m, +53% TV advertising EUR 496m, +1% Ventures & Commerce Red Arrow EUR 147m, +50% EUR 77m, +42% Distribution Adjacent EUR 31m, +7% EUR 14m, -26% | August 4, 2016 | | August 4, 2016 | | Page 7 | Page 7 Continuing operations
1 2 3 4 Q2/H1 2016 – Financial Performance Review Q2/H1 2016: Group P&L – improvement of all key metrics Q2 2016 Q2 2015 Δ H1 2016 H1 2015 Δ [in EUR m] Revenues 886 772 +15% 1,688 1,427 +18% Recurring EBITDA 254 238 +7% 424 390 +9% Non-recurring items 4 -12 ./. -5 -19 -74% Thereof Group share plan 1) 5 0 ./. 5 0 ./. EBITDA 258 226 +14% 420 371 +13% Depreciation and amortization -47 -33 +43% -86 -62 +40% Thereof PPA 1) -15 -7 >+100% -25 -11 >+100% Operating result (EBIT) 211 193 +9% 333 310 +8% Financial result -10 -20 -48% -34 -48 -30% Thereof interest result -20 -19 +5% -46 -40 +13% Thereof valuation effects 1) 15 -1 ./. 14 -7 ./. Earnings before tax (EBT) 201 173 +16% 299 262 +14% Net income 2) 136 118 +16% 203 179 +13% Underlying net income 3) 122 4) 193 4) 133 +8% 207 +7% Continuing operations; 1) Adjusted in underlying net income 2) Result for the period attributable to shareholders of ProSiebenSat.1 Media SE; 3) Adjusted for valuation effects of Group Share Plan, PPA as well as valuation effects of at- | August 4, 2016 | | August 4, 2016 | | Page 8 | Page 8 equity investments, put-options and earn out liabilities and financial assets; 4) Restated due to retrospective adjustment of valuation effects of put-options and earn-out liabilities
1 2 3 4 Q2/H1 2016 – Financial Performance Review Financial leverage at the end of Q2 2016 well inside target range of 1.5-2.5x net debt to recurring EBITDA Net debt Net financial debt [in EUR m] 2,500 2.0x 2.1x 2,000 223 1,500 1,000 2,005 1,782 500 0 30/06/2015 Change 30/06/2016 Financial leverage Financial leverage: Net debt/LTM rec. EBITDA (LTM rec. EBITDA of EUR 960m (previous year: EUR 878m) for continuing | August 4, 2016 | | August 4, 2016 | | Page 9 | Page 9 operations)
1 2 3 4 Broadcasting German-speaking Softer Q2 ratings due to EURO 2016 Audience share [in %] Q2 2016 Q2 2015 Germany 27.8% 29.8% (A 14-49) PULS 4 with Austria 23.3% 22.6% strongest Q2 in channel (A 12-49) history (4.4%) Switzerland 16.7% 19.0% (A 15-49) 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 | August 4, 2016 | | August 4, 2016 | | Page 10 | Page 10 Austria and SAT.1 Gold Austria (from Jul 15, 2014 onwards); Basis for CH: D-CH; A 15-49; Mon-Sun, 3-3 h, incl. PULS 8 (from October 8, 2015 onwards); Source: Mediapulse TV-Panel; Source: AGTT/GfK: Fernsehforschung/Evogenius Reporting
1 2 3 4 Broadcasting German-speaking Upward trend continued with expected sports effect in June Audience share development Germany (A 14-49) [in %] Q1/2016 +0.3 +0.3 +0.4 +1.1 -4.4 Q2/2016 29.1 29.4 28.8 28.4 27.3 25.0 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV | August 4, 2016 | | May 3, 2016 | | Page 11 | Page 11 Scope/ProSiebenSat.1 TV Deutschland
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Positive TV ad performance ✔ P7S1 German-speaking net TV advertising revenue growth of >2% in H1 ✔ Continued increase of TV share in media mix 1) ✔ Continued positive pricing development ✔ Growing number of addressable TV campaigns | August 4, 2016 | | August 4, 2016 | | Page 12 | Page 12 1) Source: Nielsen Media Research; Note: gross figures excl. YouTube and Facebook
1 2 3 4 Digital & Adjacent maxdome with strong SVoD subscriber growth Curated recommen- dations +23% +71% +32% SVoD Total Total subscribers 1) video views 2) user base 3) Top 3 market position Relaunch in April 2016 1) End of period Q2 2016 vs. end of period Q2 2015; 2) Q2 2016 vs. Q2 2015; 3) Average of period Q2 2016 vs. average of | August 4, 2016 | | August 4, 2016 | | Page 13 | Page 13 period Q2 2015
1 2 3 4 Digital & Adjacent Verivox has achieved a strong performance New brand campaign +23% underlining and further driving revenue positioning as trusted consumer growth 1) portal New verticals New travel vertical with +46% 2) with technology, service & content from leveraging cross- contracts platform synergies | August 4, 2016 | | August 4, 2016 | | Page 14 | Page 14 1) Q2 2016 vs. Q2 2015; 2) Total sold contracts new verticals (non-energy) Q2 2016 vs. Q2 2015
1 2 3 4 Digital & Adjacent Our largest travel asset ETI is notably outperforming the market Data excellence Value drivers Increasing scale through internationalization Push of Überflieger brand through P7S1 TV power +42% >20x 1) +81% growth of market revenue transaction growth growth volume | August 4, 2016 | | August 4, 2016 | | Page 15 | Page 15 Notes: Q2 2016 vs. Q2 2015; 1) Barclays research, PhocusWright
1 2 3 4 Digital & Adjacent Three-pillar strategy of SevenVentures Acquisitions of previous Exits of SevenVentures Transfer to P7S1’s SevenVentures media deals portfolio traditional TV ad business by P7S1 | August 4, 2016 | | August 4, 2016 | | Page 16 | Page 16
1 2 3 4 Digital & Adjacent SevenVentures added/extended three deals in Q2 2016 C New/extended deals in SevenVentures portfolio 1) Extended New New | August 4, 2016 | | August 4, 2016 | | Page 17 | Page 17 1) HeilpflanzenWohl closed on July 7, 2016 (related party transaction, for more details please see page 51 in Q2 2016 report).
1 2 3 4 Q2/H1 2016 – Outlook We confirm our positive full-year guidance ✔ Group revenue growth to exceed +10% ✔ Ad performance in line with positive net TV ad market growth range ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year | August 4, 2016 | | August 4, 2016 | | Page 18 | Page 18 Continuing operations
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