Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — FY2010 Earnings Presentation
42 slides from Prosiebensat.1 Media's earnings presentation, Mar 3, 2011
Slide 1: Financial Year 2010 Investors' and Analysts' Conference Call
Financial Year 2010 Investors’and Analysts’Conference Call March 3, 2011
Slide 2: 2010 at a glance
2010 at a glance Thomas Ebeling, CEO
Slide 3: Financials 2010: A great year for ProSiebenSat.1
Financials 2010: A great year for ProSiebenSat.1 Consolidated Revenues EUR 3.0bn +8.7 % Recurring EBITDA +30.1 % EUR 905.9m Net Income +113.3 % EUR 312.7m Share Price +179.2 % EUR 22.50 at year-end I page 3 | ProSiebenSat.1 Media AG | March 3 2011 .Figures 2010 unaudited. Recurring EBITDA: EBITDA be
Slide 4: Operations 2010: Strong positions in viewer and ad markets
Operations 2010: Strong positions in viewer and ad markets •Improved ratings in most of our Viewer ü international markets •German TV stations hold their ground in the markets competitive environment of Winter Olympics and Soccer World Cup •Most countries with revenue increase TV ad markets in a gro
Slide 5: Operations 2010: Portfolio and growth strategy on track
Operations 2010: Portfolio and growth strategy on track •New Free TV stations successfully launched Portfolio •Completion of strategic review in Germany strategy with sale of N24 •Review of our international portfolio (BE/NL, Nordic) started in December ü •Online business and new growth Growth initi
Slide 6: Financials
Financials Axel Salzmann, CFO
Slide 7: Q4 2010: Revenue growth is the driver for higher recurring EBITDA
Q4 2010: Revenue growth is the driver for higher recurring EBITDA Revenues Recurring EBITDA [EURm] [EURm] +8.4% +16.7% 1,000 954.1 400 358.6 880.4 307.2 300 200 500 100 0 Q4 2009 Q4 2010 0 Recurring EBITDA margin Q4 2009 Q4 2010 increased by 2.7%pts to 37.6% I page 7 | ProSiebenSat.1 Media AG | Marc
Slide 8: Q4 2010: Strong revenue growth in Free TV segments
Q4 2010: Strong revenue growth in Free TV segments Free TV German-speaking Free TV International Diversification Revenues [EURm] Revenues [EURm] Revenues [EURm] +9.5% 400 +11.4% -2.5% 800 150 599.1 300 116.0 113.1 600 547.3 241.9 217.1 100 200 400 50 200 100 0 0 0 Q4 2009 Q4 2010 Q4 2009 Q4 2010 Q4
Slide 9: FY 2010: Net income doubled, margin rises to 30.2 percent
FY 2010: Net income doubled, margin rises to 30.2 percent Revenues Recurring EBITDA Underlying net income [EURm] [EURm] [EURm] +8.7% 3,000.0 +30.1% 400 +91.2% 3,000 1,200 2,760.8 357.2 905.9 300 2,000 800 696.5 186.8 200 1,000 400 100 0 0 0 2009 2010 2009 2010 2009 2010 Recurring EBITDA margin incre
Slide 10: FY 2010: Continued cost management - operating costs almost stable
FY 2010: Continued cost management - operating costs almost stable Operating costs* Non-recurring expenses [EURm] [EURm] +14.8% 98.4 100 85.7 +1.3% 75 Including 2,077.5 2,105.2 EUR 50m 50 due to sale 2,000 25 of N24 0 2009 2010 1,500 Depreciation and amortization [EURm] 1,000 -6.4% 147.5 138.1 150 5
Slide 11: FY 2010: Revenue increase in all segments
FY 2010: Revenue increase in all segments Free TV German-speaking Free TV International Diversification Revenues [EURm] Revenues [EURm] Revenues [EURm] +9.7% +8.4% +4.4% 1,862.6 764.2 2,000 800 705.2 500 1,698.0 400 357.6 373.2 1,500 600 300 1,000 400 200 500 200 100 0 0 0 2009 2010 2009 2010 2009 2
Slide 12: Leverage significantly reduced from 4.7x to 3.3x
Leverage significantly reduced from 4.7x to 3.3x Total debt and net debt Favorable debt financing with [EURm] no imminent refinancing requirement: • EUR 4.1bn senior secured credit facilities • EUR 3.56bn term loans with bullet repayment in 2014/15 4000 3,762 741 • EUR 582m revolving credit facility
Slide 13: Dividend proposal 2010 for the AGM by the Executive Board
Dividend proposal 2010 for the AGM by the Executive Board 2010 Dividend Proposal AGM on July 1, 2011 • Per preference share EUR 1.14 • Dividend Payment on July 4, 2011 • Per common share EUR 1.12 • Total dividend payout** EUR 240.8m • Payout ratio*** 67.4% In EURm 2010 2009 Net profit* 312.7 146.6 P
Slide 14: Our operations
Our operations Thomas Ebeling, CEO
Slide 15: Our Four Pillar Growth strategy
Our Four Pillar Growth strategy Diversification and new growth initiatives 1. 2. 3. 4. Free TV and New media Music, Content, advertising & pay / commerce production distribution & ventures & global sales I page 15 | ProSiebenSat.1 Media AG | March 3 2011 .
Slide 16: 2010: Good ratings in German-speaking countries
2010: Good ratings in German-speaking countries TV audience shares 2010 vs 2009 [%] 35 30 28.8 28.5 25 19.3 20 17.3 17.6 16.2 15 10 5 0 Germany Austria Switzerland I page 16 | ProSiebenSat.1 Media AG | March 3 2011 Basis: . All German TV households (Germany + EU), 24 hours (Mon-Sun) 14-49 years. Exc
Slide 17: Outlook German TV 2011: Five Key Messages
Outlook German TV 2011: Five Key Messages We optimize our program investments according to advertisers demand 1. and start our new seasons and strong returning shows now. We have refined our Program Grids and create compelling and 2. complementary Entertainment Offerings for TV Viewers. 3. We have l
Slide 18: Germany: Maintained leading position in a growing TV advertising market
Germany: Maintained leading position in a growing TV advertising market Gross TV ad investments Gross TV ad market share ProSiebenSat.1 2010 vs 2009 [EURm] 2010 vs 2009 [%-points] +16.2% 12000 10.911 80 +0.7%pt 10000 9.390 70 +18.0% 60 8000 50 42.9 43.6 6000 4.758 40 4.032 4000 30 20 2000 10 0 0 Tot
Slide 19: Higher investments across all major advertising categories
Higher investments across all major advertising categories Top gross TV advertising categories in Germany EURm, Change 2010 vs 2009 [%] Total TV 10,911 16.2% Food 1,842 4.6% Cosmetics and Toiletries 1,384 12.6% Media and Publishing 1,036 20.0% Trade and Shipment 806 26.8% Beverages 720 11.6% Motor V
Slide 20: Growing importance of TV advertising within the media mix
Growing importance of TV advertising within the media mix Media split of relevant advertising categories in Germany on a gross basis 2010 vs 2009 [EURm] Food Cosmetics and toiletries Trade and shipment 180 180 180 170.1 160 160 154.4 160 140 140 140 120 120 120 100 100 80 100 80.9 80 60 38.9 80 51.9
Slide 21: TV and Internet record about 90% of ad market growth
TV and Internet record about 90% of ad market growth Gross advertising spendings in Germany Share in market growth 2010 vs 2009 [EURm] [%] Market 2,426.5 TV 1,521.7 62.7 Newspaper -7.9 -0.3 Magazin 147.4 6.1 Journal 5.1 0.2 Radio 70.1 2.9 Outdoor 60.0 2.5 Cinema 8.8 0.4 Internet 621.3 25.6 I page 21
Slide 22: TV and internet are the only media with increasing shares
TV and internet are the only media with increasing shares within last three years Gross share of advertising 100% 0.3% 0.3% 0.3% 3.6% 4.0% 3.9% 5.8% 5.8% 5.5% 90% 1.9% 1.7% 1.6% 80% 17.6% 15.2% 14.3% Cinema Outdoor 70% 21.2% Radio 60% 23.5% 23.5% Journals 50% 7.7% 9.5% 6.6% Magazines 40% Newspaper 3
Slide 23: No.1 AdVoD and No.3 online marketer
No.1 AdVoD and No.3 online marketer Gross video ad revenues in Germany Top online marketers in Germany 2010 [EURm], in-stream only 2010 [Unique Users in m per month, users aged 14+]* SevenOne InteractiveMedia 37.17 31.85 Media CCSP Tomorrow IP Deutschland 26.83 30.74 Focus SevenOne InteractiveMedia
Slide 24: 2010: Improved ratings in most international viewer markets
2010: Improved ratings in most international viewer markets Netherlands Norway Sweden Hungary TV audience shares [%] 30 27.3 30 30 30 24.0 22.1 22.5 20 20 12.9 14.4 20 15.1 14.5 20 10 10 10 10 0 0 0 0 2009 2010 2009 2010 2009 2010 2009 2010 Belgium Denmark Finland Romania 30 30 30 30 20 16.2 16.5 20
Slide 25: Strong revenue growth in Nordic region
Strong revenue growth in Nordic region TV ad market 2010 vs 2009 [%] 20 19.3 11.7 12.3 12.1 9.1 10 3.1 0 -3.1 -10 -20 -16.3 BE NL DK FI NO SE HU RO P7S1 share of advertising P7S1 revenue performance I page 25 | ProSiebenSat.1 Media AG | March 3 2011 Share . of advertising refers to net figures, own
Slide 26: Good progress in New Media & Pay / Distribution
Good progress in New Media & Pay / Distribution Additional revenues through pay TV & re-transmission fees • Launch of HD+ channels in German core market • Sat.1 Comedy and kabel eins classics with more than 2m subscribers • ProSiebenSat.1 launched HbbTV as the first private broadcaster in Germany Pr
Slide 27: Music, Commerce & Ventures is developing well
Music, Commerce & Ventures is developing well starwatch Entertainment 2010 • 30 artists in portfolio, 12 with gold and platinum status • 26 albums and singles published starwatch enters into two new markets in 2010 • Network with live entertainment companies built • Start of talent management platfo
Slide 28: Successes of Red Arrow with expansion of format sales and global productions
Successes of Red Arrow with expansion of format sales and global productions • Redseven: My Man Can (SAT.1) Productions • Kinetic Content: You Deserve It! (Dick de Rijk, ABC) • Snowman Productions SE: The Successor / Uri Geller (Kanal 5) •Danni Lowinski sold to CBS: First US remake deal of German se
Slide 29: Outlook and strategy update
Outlook and strategy update Thomas Ebeling, CEO
Slide 30: Positive driver for our TV business
1. Positive driver for our TV business 1. TV remains key advertising medium 2. Positive economic trends in most markets Integrated and complementary station 3. positioning enhanced by new channels and formats 4. Net pricing growth in most markets 5. Synergies with online I page 30 | ProSiebenSat.1 M
Slide 31: We are well positioned to lead the OTT market in Germany
2. We are well positioned to lead the OTT market in Germany… Free Pay Example: Germany Free TV market size Pay TV market size Managed 2010: 2010: New market players platforms ~EUR 4bn ~ EUR 1bn mainly enter pay segments AdVoD market size PayVoD market size 2010: 2010: New players with OTT ~ EUR 0.05
Slide 32: … with strong brands
2. … with strong brands • ProSiebenSat.1 network with Largest professional about 100m premium video AdVoD network Ad views per months VoD MyVideo largest portal for professional AdVoD content • with 8.58 m Unique New sales cooperation expected Users 100% acquisition of • Over 35,000 titles maxdome i
Slide 33: Ongoing HD roll-out to cable and IPTV platforms in Germany
2. Ongoing HD roll-out to cable and IPTV platforms in Germany • Successful launch of HD+ Satellite services with Astra • More than 1.5 m HD+ smartcards delivered to manufacturers and ~700k HD receivers/CI modules sold in the market • Conversion rate after free period of one year better than expected
Slide 34: Multi-year distribution deals will drive our international revenue performance
2. Multi-year distribution deals will drive our international revenue performance Share of carriage fees 2010 Key activities 2010/2011 •Renewal of existing multi-year agreements 51% with operators •Launch of new channel (MAX in November 2010) 17% •Close of new deals with cable operators 23% •Renewal
Slide 35: Main business initiatives expanding music, live and artist management
3. Main business initiatives expanding music, live and artist management Examples 2011 Signing new artists •Roxette, Guano Apes and Rumer Increase label and •Top ten rankings in February: distribution deals Lena, Roxette and Max Raabe Create own events / •Udo Lindenberg-Musical, partner with stand S
Slide 36: New ways to capitalize our ad inventory in Germany
3. New ways to capitalize our ad inventory in Germany Digital Products Design 1. Media for revenue and equity share deals ~40 M4R/ES Fashion 2. SevenVentures launched deals Accessories Create own brands and so far 3. license products Travel, Leisure Beauty Wellness OTC I page 36 | ProSiebenSat.1 Med
Slide 37: Increased competitiveness and new revenue growth through strong content unit
4. Increased competitiveness and new revenue growth through strong content unit Sweden/ Red Arrow Denmark (2010/2011) 2010/2011 at a Snowman Productions glance UK (2011) Germany/ •More than 30 Austria formats on air •Formats sold Belgium/ in more than Netherlands 150 countries (2010) USA (2010) •Ove
Slide 38: Expansion of production and development partnerships in most significant territories
4. Expansion of production and development partnerships in most significant territories Expand network in order to accelerate format deals Production of English fiction content Distribution of English formats for third parties I page 38 | ProSiebenSat.1 Media AG | March 3 2011 .
Slide 39: Positive financial outlook on financial year 2011
Positive financial outlook on financial year 2011 •Positive macroeconomic conditions in most markets •Revenue and earnings growth across all segments •Free cash flow improvement •Net debt and leverage reduction I page 39 | ProSiebenSat.1 Media AG | March 3 2011 .
Slide 40: I page 40 | ProSiebenSat.1 Media AG | March 3 2011
I page 40 | ProSiebenSat.1 Media AG | March 3 2011 .
Slide 41: Disclaimer
Disclaimer This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objecti
Slide 42: ProSiebenSat.1 Media AG Investor Relations
ProSiebenSat.1 Media AG Investor Relations Medienallee 7 D-85774 Unterföhring Tel. +49/89/9507-1502 www.ProSiebenSat1.com I page 42 | ProSiebenSat.1 Media AG | March 3 2011 .