ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q1 2007 Earnings Presentation
30 slides from ProSiebenSat.1 Media's earnings presentation, May 9, 2007
Slide 1: Business Performance in Q1 2007
Business Performance in Q1 2007 Guillaume de Posch, Chief Executive Officer Lothar Lanz, Chief Financial Officer Munich, May 9, 2007
Slide 2: Agenda
Agenda Highlights Q1 2007 Financial Statements Q1 2007 Outlook 2
Slide 3: ProSiebenSat.1 Group: Achievements in Q1 2007
ProSiebenSat.1 Group: Achievements in Q1 2007 EUR m Q1 2007 Q1 2006 Change Revenues 501.2 465.3 +7.7% EBITDA 82.0 70.6 +16.1% EBITDA margin 16.4 15.2 +7.9% In percent 3
Slide 4: Achievements in Q1 2007: Core business Free TV
ProSiebenSat.1 Group: Achievements in Q1 2007 VAT-increase with no negative effects on Group's TV advertising revenues. Core business Free TV Benefits from positive economic climate: Growth of Free TV segment through higher advertising revenues Sat.1 increases revenues and profitability Revenues up
Slide 5: German TV Advertising Market: Gross Revenues in Q1 2007
German TV Advertising Market: Gross Revenues in Q1 2007 ProSiebenSat.1 Group strengthened leading position in TV advertising market: Growth rates above market average. Gross revenues Q1 2007 vs. Q1 2006 in EUR m +10.5% German TV market 900 848.5 (gross): +6.9% 768.0 +9.6 percent 800 735.5 700 687.8
Slide 6: German TV Advertising Market: Sector Trends Q1 2007
German TV Advertising Market: Sector Trends Q1 2007 Food industry is the most important industry for TV advertising. Gross advertising investments by sectors, change vs. Q1 2006 in percent Change January - March 2007 Q1 2007/2006 +9.6% Gross TV advertising 1,983.0 +0.8% Food 366.7 +14.2% Personal Ca
Slide 7: The German TV market: Audience Share
The German TV market: Audience Share ProSiebenSat.1 Group achieved a market share of 28.9 percent. 14 – 49 age group, in percent 30.0% 30.3% 0.2% 0.2% 28.9% 0.6% 0.2% 27.3% 1.0% 26.2% 1.1% 25.6% 0.6% 5.7% 0.5% 0.6% 5.5% n-tv 5.5% 2.8% 2.7% 2.7% Super RTL 6.9% 7.7% 6.6% 11.9% Vox 12.0% 10.6% 16.2% 15
Slide 8: Free TV: Successful Programs of Group's stations in Q1 2007
Free TV: Successful Programs of Group‘s stations in Q1 2007 Top 5 programs of the stations in Q1 2007. Audience share in key demographic (14 – 49). „Champions-TV: FC Bayern München – Real Madrid, 2nd half (34.5%) „Navy CIS“ (up to 18.7%) „Der Bulle von Tölz“ (up to 18.6%) „Sister Act 2: Back
Slide 9: Achievements in Q1 2007: Diversification
ProSiebenSat.1 Group: Achievements in Q1 2007 Diversification unit increases contribution to consolidated revenues from 11.0 to 12.5 percent. Segments: Transaction TV and Other Diversification Contributes increasingly to Group revenues Reorganisation of Diversification division and readjustment of 9
Slide 10: Diversification: Further Expansion on the Internet in Q1 2007
Diversification: Further Expansion on the Internet in Q1 2007 Through strategic investments and the expansion of ProSiebenSat.1 Networld the Group expands its Internet presence: New revenue streams and content platforms. Acquisition of about 75 percent in February 2007 Germany's second largest p
Slide 11: Shareholder Structure as of March 31, 2007
ProSiebenSat.1 Group: Shareholder Structure as of March 31, 2007 Lavena Holding 4 GmbH is new principal shareholder (Closing: March 6, 2007). Split of capital stock In percent Axel Springer Lavena Holding 4 GmbH AG KKR/Permira Public free float 37.3 50.7 Axel Springer AG 48.2% 100%* Lavena Holding 4
Slide 12: Agenda
Agenda Highlights Q1 2007 Financial Statements Q1 2007 Outlook 12
Slide 13: Q1 2007 – Revenues and Costs
ProSiebenSat.1 Group: Q1 2007 – Revenues and Costs Despite increase in VAT, the Group´s revenues are up due to growth in both units. Group keeps cost rise below rate of revenues increase. In EUR m Revenues Costs +7.7% +6.2% 600 500 432.2 501.2 407.0 500 465.3 400 400 300 300 200 200 100 100 0 0 Q1 2
Slide 14: Q1 2007 – Total Costs
ProSiebenSat.1 Group: Q1 2007 – Total Costs Cost increase results from higher personnel as well as higher programming and material expenses. Group's total costs by line item, Q1 2007 vs. Q1 2006 in EUR m +4.1% +3.4% +33.0% +2.8% +17.5% +6.3% 400 Total cost increase: Q1 2006 350 335.3 25.2 EUR m 322.
Slide 15: Q1 2007 – Results: EBITDA
ProSiebenSat.1 Group: Q1 2007 – Results Group enhances profitability despite higher total costs. EBITDA is significantly up as a result of strong revenue growth. EBITDA EBITDA margin In EUR m In percent +1.2 +16.1% percentage 90 20 82.0 points 80 16.4 70.6 16 15.2 70 60 12 50 40 8 30 20 4 10 0 0 Q1
Slide 16: Q1 2007 – Results: Pre-tax profit
ProSiebenSat.1 Group: Q1 2007 – Results Strong increase in pre-tax profit due to positive development of revenues and financial result. Pre-tax profit margin also rises significantly. Pre-tax profit Pre-tax profit margin In EUR m In percent +2.7 +34.7% percentage 70 67.5 15 points 13.5 60 12 50.1 10
Slide 17: Q1 2007 – Results: Net profit and EPS
ProSiebenSat.1 Group: Q1 2007 – Results Increase in consolidated net profit improves earnings per share. Consolidated profit Earnings per share* In EUR m In EUR 50 +32.2% 0.5 +35.7% 40.6 40 0.4 30.7 30 0.3 0.2 0.19 20 0.14 0.1 10 0.0 0 Q1 2006 Q1 2007 Q1 2006 Q1 2007 * Preference share 17
Slide 18: Q1 2007 – Net Financial Debt
ProSiebenSat.1 Group: Q1 2007 – Net Financial Debt Decrease of net financial debt due to positive development of free cash flow. In EUR m Net financial debt Debt instruments as per March 31, 2007 500 400 500 -64.7% RCF** 400 300 254.6 300 200 150 200 100 Notes 36 0 Mortgages 100 90.0 May 2009 August
Slide 19: Q1 2007 – Key Figures
ProSiebenSat.1 Group: Q1 2007 – Key Figures Q1 2007 Q1 2006 Change EUR m EUR m EUR m Percent Revenues 501.2 465.3 35.9 7.7 EBITDA 82.0 70.6 11.4 16.1 EBIT 71.9 61.1 10.8 17.7 Financial loss -4.4 -11.0 6.6 60.0 Pre-tax profit 67.5 50.1 17.4 34.7 Consolidated net profit 40.6 30.7 9.9 32.2 Earnings per
Slide 20: Free TV Segment: Q1 2007 – Key Figures by Stations
Free TV Segment: Q1 2007 – Key Figures by Stations Sat.1, kabel eins and N24 increase revenues and profit. Revenues of ProSieben rise considerably as a result of the station´s improved performance. Key figures Revenues EBITDA Pre-tax profit In EUR m Q1 2007 Q1 2006 Percent Q1 2007 Q1 2006 Percent Q1
Slide 21: Q1 2007 – Key Figures by Segments
ProSiebenSat.1 Group: Q1 2007 – Key Figures by Segments Growth in both units: Free TV segment grows through higher advertising revenues; Diversification unit grows organically and through stakes in solute. Key Keyfigures Figures Total Totalrevenues revenues External Externalrevenues revenues EBITDA
Slide 22: Diversification: Q1 2007 – Revenues
Diversification: Q1 2007– Revenues Significant growth in Diversification unit. Major growth drivers were the Internet, digital services, and the international programming sales. In EUR m External Revenues Diversification 70 62.6 Contribution to Group revenues: +22.0% 60 12.5 percent 51.3 50 (Q1 2006
Slide 23: Agenda
Agenda Highlights Q1 2007 Financial Statements Q1 2007 Outlook 23
Slide 24: Outlook: Economic Climate
Outlook: Economic Climate Continuing upward economic trend. In percent Real GDP Private Consumption 3.5 3.5 3.2 3.0 3.0 2.7 2.4 2.4 2.5 2.5 1.9 2.0 2.0 1.5 1.5 1.2 1.2 1.0 0.9 0.8 1.0 0.9 0.5 0.1 0.1 0.5 0.0 0.0 -0.1 0.0 -0.5 -0.2 -1.0 -0.8 -0.5 2000 2001 2002 2003 2004 2005 2006 2007e 2000 2001 200
Slide 25: Outlook: Net TV Advertising
Outlook: Net TV Advertising ProSiebenSat.1 Group expects the net TV advertising market to grow by 2 to 3 percent in 2007. In percent 15 10 9.1 6.8 5 1.8 ~3 ~2 - 3 1.3 0 1999 2000 2001 2002 2003 2004 2005** 2006e* 2007e* -5 -3.7 -5.1 -10 -11.5 -15 Source: ZAW, *ProSiebenSat.1 estimates **ZAW - data f
Slide 26: Outlook: Programming Highlights of the Group's Stations
Outlook: Programming Highlights of the Group‘s Stations The family of stations presents a whole range of new programs in the upcoming months. Programming highlights of all stations in the second quarter 2007 and in the following months. First-class TV entertainment for the whole family Comedy high
Slide 27: ProSiebenSat.1/SBS: At a Glance
ProSiebenSat.1/SBS: At a Glance ProSiebenSat.1 Group is evaluating the acquisition of SBS Broadcasting Group: Creating a leading pan-European media group. SBS at a glance 19 commercial TV stations in 3 cluster areas: Benelux, Scandinavia, Eastern Europe 20 premium Pay TV channels in Scandinavia
Slide 28: Rationale for Potential SBS Transaction
ProSiebenSat.1/SBS: Rationale for Potential SBS Transaction Both companies benefit from each other’s expertise and are majority holders of most of their subsidiaries. Complementary Geographic Fit Strong and more diversified Media Portfolio Potential for Synergies Increased Growth Potential 28
Slide 29: Strategic Goals
ProSiebenSat.1 Group: Strategic Goals Leading commercial TV group in Germany 1 2 3 Strengthening of core business Expansion of Positioning Free TV Diversification in the digital world Growth Positive outlook for fiscal 2007 affirmed: Further increase in revenues and results Continued cost contro
Slide 30: ProSiebenSat.1 Media AG Corporate Office
ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D-85774 Unterföhring Tel. +49/89/95 07-1151 Fax +49/89/95 07-91151 30