ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q1 2016 Earnings Presentation
39 slides from ProSiebenSat.1 Media's earnings presentation, May 3, 2016
Slide 1: Q1 2016 Press Presentation
May 3, 2016 Q1 2016 Press Presentation | February 25, 2016 | | Page 1
Slide 2: Q1 2016 At a Glance
May 3, 2016 Q1 2016 At a Glance Thomas Ebeling Chief Executive Officer | February 25, 2016 | | Page 2
Slide 3: Key financials in Q1 2016
1 2 3 4 Q1 2016 – At a Glance Key financials in Q1 2016 [Q1 2016 vs. Q1 2015; in EUR m] Revenues 802 +22% ✔ Recurring EBITDA 170 +12% ✔ Underlying net income 76 +8% ✔ | May 3, 2016 | Continuing operations | Page 3
Slide 4: Continued dynamic growth across all three business segments
1 2 3 4 Q1 2016 – At a Glance Continued dynamic growth across all three business segments Broadcasting Content Production Digital & Adjacent German-speaking & Global Sales Digital Ventures & TV advertising Distribution Adjacent Entertainment Commerce Revenue growth vs. Q1 2015 +4% +14% +66% +110% -4
Slide 5: 2018 Group revenue growth target
1 2 3 4 Q1 2016 – At a Glance 2018 Group revenue growth target Rec. EBITDA growth target 2012-18 revenue growth target [in EUR m, degree of achievement] [in EUR m, degree of achievement] 57% 4,206 57% 66% 51% 67% 3,408 2,301 2,356 2,175 1,926 1,535 1,095 943 950 745 335 280 370 95 Group rec. EBITDA
Slide 6: Q1 2016 Financial Performance Review
May 3, 2016 Q1 2016 Financial Performance Review Dr. Gunnar Wiedenfels Chief Financial Officer | February 25, 2016 | | Page 6
Slide 7: Q1 2016: dynamic revenue and recurring EBITDA increase
1 2 3 4 Q1 2016 – Financial Performance Review Q1 2016: dynamic revenue and recurring EBITDA increase Consolidated revenues Recurring EBITDA [in EUR m] [in EUR m] +22% +12% 1,000 200 802 170 153 655 150 500 100 50 0 0 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Recurring EBITDA margin: 21% (-2%pts) | May 3, 201
Slide 8: Q1 2016: Group revenue growth driven by all segments
1 2 3 4 Q1 2016 – Financial Performance Review Q1 2016: Group revenue growth driven by all segments Key Group revenue growth drivers vs. PY [Q1 2016 external revenues; growth rates in %] Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales EUR 493m, +5% EUR 242m, +75% EU
Slide 9: Q1 2016: high single-digit underlying net income growth
1 2 3 4 Q1 2016 – Financial Performance Review Q1 2016: high single-digit underlying net income growth Financial result Underlying net income [in EUR m] [in EUR m] -17% +8% 25 100 80 76 70 0 60 40 -25 -24 -28 20 -50 0 Q1 2015 Q1 2016 Q1 2015 Q1 2016 | May 3, 2016 | Continuing operations | Page 9
Slide 10: Broadcasting German-speaking: continued solid revenue and recurring EBITDA improvement
1 2 3 4 Q1 2016 – Financial Performance Review Broadcasting German-speaking: continued solid revenue and recurring EBITDA improvement External revenues and recurring EBITDA [in EUR m] Q1 2016 Q1 2015 y-o-y Comments TV advertising business benefitted from Ext. revenues 493 471 +5% continued positive
Slide 11: Digital & Adjacent: successful acquisitions drive segment revenue and recurring EBITDA
1 2 3 4 Q1 2016 – Financial Performance Review Digital & Adjacent: successful acquisitions drive segment revenue and recurring EBITDA External revenues and recurring EBITDA [in EUR m] Q1 2016 Q1 2015 y-o-y Comments Ext. revenues 242 138 +75% Dynamic revenue growth in Digital Entertainment and Ventur
Slide 12: Content Production & Global Sales: continued double-digit revenue growth
1 2 3 4 Q1 2016 – Financial Performance Review Content Production & Global Sales: continued double-digit revenue growth and notably improved profitability External revenues and recurring EBITDA [in EUR m] Q1 2016 Q1 2015 y-o-y Comments Continued solid revenue growth mainly Ext. revenues 63 46 +38% d
Slide 13: Q1 2016: Group P&L – improvement of all key metrics
1 2 3 4 Q1 2016 – Financial Performance Review Q1 2016: Group P&L – improvement of all key metrics [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
Slide 14: Financial leverage at the end of Q1 2016 well inside target range
1 2 3 4 Q1 2016 – Financial Performance Review Financial leverage at the end of Q1 2016 well inside target range of 1.5-2.5x net debt to recurring EBITDA Net debt [in EUR m] Net financial debt 2,500 26 M&A spend to a large 1.7x 2.1x 523 extent covered by strong 609 2,000 FCF generation from 342 oper
Slide 15: Financial outlook for 2016
1 2 3 4 Q1 2016 – Financial Performance Review Financial outlook for 2016 Group revenue growth (in %) >+10% Recurring EBITDA above prior year Underlying net income above prior year Financial leverage 1.5x – 2.5x | May 3, 2016 | | Page 15
Slide 16: Broadcasting German-speaking & Red Arrow
May 3, 2016 Broadcasting German-speaking & Red Arrow Thomas Ebeling Chief Executive Officer | February 25, 2016 | | Page 16
Slide 17: Germany with slower start while Austria performs strongly
1 2 3 4 Broadcasting German-speaking & Red Arrow Germany with slower start while Austria performs strongly Audience share [in %] Q1 2016 Q1 2015 Germany 28.1% 28.9% (A 14-49) Austria 23.5% 21.5% (A 12-49) Switzerland 18.2% 18.3% (A 15-49) Basis for GER: All German TV households (GER+EU/German-speaki
Slide 18: We see an upward trend from February onwards
1 2 3 4 Broadcasting German-speaking & Red Arrow We see an upward trend from February onwards … Audience share development Germany (A 14-49) [in %] +0.4 +1.1 28.8 28.4 27.3 January 2016 February 2016 March 2016 Basis: All German TV households (German-speaking), A 14-49, | May 3, 2016 | Mon-Sun, 3-3
Slide 19: … and maintain our leading position in the German market
1 2 3 4 Broadcasting German-speaking & Red Arrow … and maintain our leading position in the German market Audience share (A 14-49)1) Share of advertising2) [Q1 2016; in %] [Q1 2016; in %] ∆ ∆ +2.6 %pts +8.9 %pts 28.1 42.4 25.5 33.5 1) Basis: All German TV households (German-speaking), A 14-49, Mon-S
Slide 20: RA already contributes >20% of our new local commissions
1 2 3 4 Broadcasting German-speaking & Red Arrow RA already contributes >20% of our new local commissions Examples of successful local in-house formats in German Free TV >20% Audience share [A 14-49; in %] of commissioned new launches Kiss Bang Love Married At First Sight The Taste come from Red Arr
Slide 21: Broadcasting German-speaking & Red Arrow: outlook 2016
1 2 3 4 Broadcasting German-speaking & Red Arrow Broadcasting German-speaking & Red Arrow: outlook 2016 1 Focus on core channels ProSieben and Sat.1 2 Launch new docu/factual channel to broaden portfolio 3 Leverage TVD - Red Arrow relationship for content creation | May 3, 2016 | | Page 21
Slide 22: Broadcasting German-speaking Ad Market Performance
May 3, 2016 Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer | February 25, 2016 | | Page 22
Slide 23: Positive development in Q1 2016
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Positive development in Q1 2016 P7S1 German-speaking TV net advertising revenue growth of +4% ✔ Continued increase of TV share in media mix1) ✔ Continued positive pricing development ✔ Growing number of addressable TV campaigns ✔ | May 3,
Slide 24: Advertising share in German-speaking markets
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Advertising share in German-speaking markets ProSiebenSat.1 gross TV ad market share [in %] Q1 2016 Q1 2015 Germany 42.4% 43.6% Austria 36.3% 35.7% Switzerland 28.0% 29.0% | May 3, 2016 | Basis: Q1 2016; Source: Nielsen Media Research / Me
Slide 25: TV continues to benefit at the expense of other media
1 2 3 4 Broadcasting German-speaking / Ad Market Performance TV continues to benefit at the expense of other media Gross ad spendings, Germany [Q1 2016 vs. Q1 2015; in % and %pts] Share of segment Change in media mix Total 100.0% TV 47.7% +1.5%pts Online 10.4% -0.9%pts Radio 6.1% +0.1%pts Newspapers
Slide 26: Innovation leader in HbbTV-enabled addressable TV ad business
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Innovation leader in HbbTV-enabled addressable TV ad business 20 SwitchIn campaigns 12 clients XXL in Q1 Walt Disney Opel Lexus SwitchIn Canon Electronic Arts Tirol Spot overlay E WIE EINFACH Ferrero Eurowings | May 3, 2016 | | Page 26
Slide 27: Solid single-digit net TV ad market growth forecast
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Solid single-digit net TV ad market growth forecast German net TV ad market estimates 2016 +4.3% +2.5% +4.3% +2-3% ProSiebenSat.1 internal market estimate Source: Warc International Ad Forecast 2015/2016 (Dec. 2015); ZenithOptimedia Advert
Slide 28: Digital & Adjacent
May 3, 2016 Digital & Adjacent Thomas Ebeling Chief Executive Officer | February 25, 2016 | | Page 28
Slide 29: Our market leading D&A portfolio
1 2 3 4 Digital & Adjacent Our market leading D&A portfolio Market position Q1 revenue split A Digital Entertainment 36% C Ventures & Commerce 60% AdVoD Travel Top Top #1 3 #13) #1 #1 5 #11) Top #2 #12) #1 #1 5 PayVoD Games Beauty & Accessories Online Comparison Top Top #2 #1 34) 35) #1 Top 5 Top #2
Slide 30: We maintain #1 position in the German premium video ad market
1 2 3 4 Digital & Adjacent A We maintain #1 position in the German premium video ad market Online video advertising market Germany1) Channel websites [in EUR m] #1 +37% in premium +40% video ad video unique 124 market1) users2) 88 Multi-channel network +88% video views in Germany3) Q1 2015 Q1 2016 1
Slide 31: Studio71 is a leading MCN in Germany and globally
1 2 3 4 Digital & Adjacent A Studio71 is a leading MCN in Germany and globally … #1 MCN in Germany ComScore MCN Ranking, March 20161) #1 Global #5 MCN2) Studio71 Warner Music Broadband VEVO TubeOne TV Networks 1) Source: ComScore YouTube Partners Report Mar 2016 (content views, desktop only, incl. m
Slide 32: maxdome continues to grow with new distribution platforms
1 2 3 4 Digital & Adjacent A maxdome continues to grow with new distribution platforms 1.4m potential households +83% +55% +32% SVoD Total Total 2.5m potential subscribers1) video views2) user base3) households4) Top 3 market position New distribution platforms 1) End of period Q1 2016 vs. end of pe
Slide 33: Outstanding etraveli performance is driving our Travel vertical
1 2 3 4 Digital & Adjacent C Outstanding etraveli performance is driving our Travel vertical +84% y-o-y revenue growth +85% growth of international business1) | May 3, 2016 | 1) Business outside Nordics. | Page 33
Slide 34: Online Comparison pushed by Verivox' record performance in Q1
1 2 3 4 Digital & Adjacent C Online Comparison pushed by Verivox’ record performance in Q1 Record performance of Verivox in Q1 +38% revenue growth1) Market share gains across all new product categories 80% P7S1 stake | May 3, 2016 | 1) Q1 2016 vs. Q1 2015 pro-forma revenues. | Page 34
Slide 35: Digital & Adjacent: outlook
1 2 3 4 Digital & Adjacent Digital & Adjacent: outlook 1 Deliver double-digit revenue growth in FY 2016 2 Continue bolt-on M&A and evaluate partnerships to further drive growth 3 Further internationalize our digital verticals | May 3, 2016 | | Page 35
Slide 36: Q1 2016 Summary & Outlook
May 3, 2016 Q1 2016 Summary & Outlook Thomas Ebeling Chief Executive Officer | February 25, 2016 | | Page 36
Slide 37: We confirm our positive full-year guidance
1 2 3 4 Q1 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 ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year ✔ | May 3, 2016 | Conti
Slide 38: Disclaimer
Disclaimer This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("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 39: | May 3, 2016 | | Page 39
| May 3, 2016 | | Page 39