ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Investor Day (October 2015)
140 slides from ProSiebenSat.1 Media's investor day presentation, Oct 15, 2015
Slide 1: Growing to the next level
October 15, 2015 Growing to the next level Capital Markets Day 2015 Digital & Adjacent | October 15, 2015 | | Page 1
Slide 2: Digital & Adjacent Keynote
October 15, 2015 Growing to the next level Capital Markets Day 2015 Dr. Christian Wegner Digital & Adjacent Keynote | October 15, 2015 | | Page 2
Slide 3: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Grew Travel Established new Launched assets Expanded importer vertical verticals internationally of choice deals Beauty & Online Accessories Comparison >EUR 160m vertical revenues per year1) Became #1 MCN Broadened US Closed SVoD Built in German
Slide 4: Just signed: We acquired a leading European OTA for flights
Just signed: We acquired a leading European OTA1) for flights What Etraveli is Why we acquired it 100%2) We complement our online travel vertical and close the blank spot “flights” in our customer journey Etraveli enables a profitable, low risk internationalization of Travel based on a cost efficien
Slide 5: We are continuing our financial success story since 2010
We are continuing our financial success story since 2010 External revenues D&A [in EUR m] +36% CAGR 677 611 484 Rec. EBITDA 335 margin 225 172 ~20% 20101) 20111) 2012 2013 2014 H1 2015 LTM | October 15, 2015 | 1) 2010 and 2011 revenues adjusted for 9Live and Pay TV revenues | Page 5
Slide 6: Therefore we raise our CMD target for 2018
Therefore we raise our CMD target for 2018 We have already almost reached … so we raise our 2018 growth target … our 2018 growth target by EUR 600m Ext. D&A revenue growth since 2012 Ext. D&A revenue growth since 2012 [in EUR m] [in EUR m] We are targeting >EUR 1.5bn H1 2015 LTM H1 2015 LTM Current
Slide 7: Digital & Adjacent has a unique value proposition
Digital & Adjacent has a unique value proposition We are the only player combining significant Premium commerce assets, content digital audience reach, understanding of local Audience reach and communities and premium understanding video content of local Commerce communities to build new businesses
Slide 8: We will reach our new target by continuing our growth strategy
We will reach our new target by continuing our growth strategy … Push organic growth Internationalize Leverage our unique Take entertainment TV and inter-/intra- and commerce vertical synergies verticals international Accelerate growth Participate in global through M&A value creation Follow a Select
Slide 9: Across our D&A portfolio of market leading assets
… across our D&A portfolio of market leading assets Digital & Adjacent Market position Ventures & Commerce Digital Entertainment Adjacent Travel New Music, Artist Mgmt., Ventures AdVoD PayVoD Games vertical verticals Live, Licensing Beauty & Accessories Top Top #1 #1 34) 35) #1 #4 #1 (M4R/E) Leading
Slide 10: We follow clear investment criteria to select our markets
We follow clear investment criteria to select our markets Criteria fit High Medium Low Beauty & Online Selection criteria for verticals Travel Entertainment Accessories Comparison TV works Brand-driven Community-focused Local hedge Manageable inventory n/a n/a n/a Synergies with portfolio Structural
Slide 11: Macro KPIs are proving the potential of digital businesses
Macro KPIs are proving the potential of digital businesses 77% 14% 65% Ventures & internet broadband smartphone Commerce penetration1) penetration penetration3) >15Mbps2) Digital Entertainment Adjacent EUR 1,200 11min average yearly online video eCommerce usage spending4) per day5) 1) Internet users
Slide 12: Our assets are facing distinctive opportunities and risks
Our assets are facing distinctive opportunities and risks … Key opportunities Key risks • Creation of new local verticals • Increased competition in M4R/E Ventures & • International expansion of M4R/E by new entrants Commerce and commerce verticals • Aggressive marketing push of • Launch of new sale
Slide 13: Dedicated strategies for each of our units
… leading to dedicated strategies for each of our units Across all Ventures & Commerce: Digital Entertainment: Adjacent: markets, we Build and grow Become a global Build new new verticals player in video ecosystems • Push organic growth Continue to invest Build global video Grow music • Accelerate w
Slide 14: Our strategy Outlook
Our strategy Outlook 1 2 3 4 5 How do we How do we How do we How do we What is our accelerate build and become a build new financial our growth grow new global player adjacent outlook? with M&A? commerce in video? ecosystems? verticals? | October 15, 2015 | | Page 14
Slide 15: A unique approach to create competitive verticals with M&A
1 2 3 4 5 We have a unique approach to create competitive verticals with M&A … and leverage our vertical … to create synergies … market leading … use businesses TV media to build brands … We acquire promising assets following a string of pearls approach … | October 15, 2015 | | Page 15
Slide 16: We acquire promising assets following a “String of Pearls” strategy
1 2 3 4 5 We acquire promising assets following a “String of Pearls” strategy Commerce examples Bolt-on acquisitions accelerate our growth in national and international markets … Attractive shareholder value creation potential for us through synergies with TV and our verticals Entertainment examples
Slide 17: TV media is our key advantage to grow businesses
1 2 3 4 5 TV media is our key advantage to grow businesses … Case study: Amorelie We utilize our idle TV Average net revenues/day ad inventory to push [indexed] +120% businesses in second +50% TV flight in first TV ads directly increase TV flight sales compared to non-TV 225 189 phases (TV breaks) 1
Slide 18: Complemented with analytics & data
1 2 3 4 5 … which we complement with analytics & data Media analytics Cross-unit data management We constantly analyze how media We implement a cross-vertical Fully aligned works (the best spot in the best slot for data management to offer more and compliant the best audience) with our commerce indi
Slide 19: Our vertical approach creates synergies – and thus further value
Our vertical approach creates synergies – and thus further value Example: Travel vertical Cross-vertical lead gen and traffic push >25% contribution to revenue growth1) Marketing excellence (CRM, SEO, SEA) Joint WKZ initiatives (ad allowance) >35% contribution to rec. EBITDA growth1) Shared services
Slide 20: Significant performance uplifts with our acquisitions
1 2 3 4 5 We have proven significant performance uplifts with our acquisitions Case studies1) +125% Rec. EBITDA 2014 2013 uplift within 4.9x 12 months after closing 2013 2014 Blended acquisition multiple EV/EBITDA H1 2015 LTM 1) Year of majority stake acquisition shown | Page 20 | October 15, 2015 |
Slide 21: Our strategy Outlook
Our strategy Outlook 1 2 3 4 5 How do we How do we How do we How do we What is our accelerate build and become a build new financial our growth grow new global player adjacent outlook? with M&A? commerce in video? ecosystems? verticals? | October 15, 2015 | | Page 21
Slide 22: We successfully expanded our Commerce portfolio
1 2 3 4 5 We successfully expanded our Commerce portfolio … M4R/E portfolio Commerce verticals International Beauty & Online Health & National deals Travel deals Accessories Comparison Wellness Selected assets Selected assets New New New New New New 7NXT New New New New to New New come | October 15,
Slide 23: Will continue to build and grow new commerce verticals
1 2 3 4 5 … and will continue to build and grow new commerce verticals Key market dynamics Our strategic priority e-Commerce market growing double-digit globally1) We continue to invest with M4R/E and in Lead Gen assets, International platform-driven players to build new verticals in entering German
Slide 24: Four phase approach to build verticals
1 2 3 4 5 We optimized our four phase approach to build verticals Example: Phases of Travel vertical Key criteria for International Vertical vertical selection: Lead Gen M4R/E 40 countries • Synergies with TV • Structural market growth • Attractive margins Test media fit of Understand Build vertical
Slide 25: M4R/E: Initially, we test new markets and verticals
1 2 3 4 5 M4R/E: Initially, we test new markets and verticals with M4R/E What we get from M4R/E deals Rationale Equity Monetize our idle ad inventory and stimulate TV ad market Exit participation Benefit from TV impact with performance-based models Revenue share +26% Test media fit and learn about #
Slide 26: Lead Gen: We enter new verticals with asset-light businesses
1 2 3 4 5 Lead Gen: We enter new verticals with asset-light businesses Our Lead Gen approach Rationale Understand market dynamics by investing in Lead Gen Avoid high risk thanks to Travel Beauty & Online New high-margin businesses Accessories Comparison verticals without inventory cost Use Lead Gen
Slide 27: Verticals: We develop verticals following our digital playbook
1 2 3 4 5 Verticals: We develop verticals following our digital playbook Premium Marketing Distribution Local Inter- Digital Leadership TV media & data capabilities operational vertical transfor- by an to drive knowledge with existing launch pad synergies mation experienced awareness to optimize com
Slide 28: International: We leverage our Media Alliance to export verticals
1 2 3 4 5 International: We leverage our Media Alliance to export verticals European Media Alliance Strategic rationale Media Alliance and strategic partner Access media of leading Next partner to join European broadcasters Scandi., CEE UK Increase deal flow among New Benelux & Finland Poland >250m
Slide 29: Summary: We aim to be the growth partner of choice
1 2 3 4 5 Summary: We aim to be the growth partner of choice Cash, media and Leadership International reach operations We accelerate growth We have an entre- We expand reach with through cash, media preneurial leadership our Media Alliance and reach and best in class team fully focused on internatio
Slide 30: Further enhance our vertical strategy
1 2 3 4 5 Going forward we plan to further enhance our vertical strategy We continue to build and grow verticals We selectively add specialty offline products to our verticals, e.g. for elderly people and families We build new sales platforms to leverage synergies and strengthen our sales power | Oc
Slide 31: We converge video and commerce on new platforms
1 2 3 4 5 We converge video and commerce on new platforms Health & Our portfolio of online courses Wellbeing Commerce Video content: model: Online coaching Subscription- courses Yoga, meditation, nutrition Bodyweight, cross-fit, HIT based access Sales platform: Enrichment with physical goods Box lik
Slide 32: Our strategy Outlook
Our strategy Outlook 1 2 3 4 5 How do we How do we How do we How do we What is our accelerate build and become a build new financial our growth grow new global player adjacent outlook? with M&A? commerce in video? ecosystems? verticals? | October 15, 2015 | | Page 32
Slide 33: We cover the whole online video value chain in Germany
1 2 3 4 5 We cover the whole online video value chain in Germany … Content creation Aggregation Distribution Monetization .de New AdVoD .de New New New New MCN PayVoD >11bn video views in H1 20151) 1) Video views of P7S1 AdVoD | October 15, 2015 | platforms and mandates, incl. CDS | Page 33 (pro for
Slide 34: Online video market is becoming more complex
1 2 3 4 5 ... whilst the online video market is becoming more complex Global online video players Programmatic advertising pushing into AdVoD players emerging globally National digital sales houses Global PayVoD players taking up speed growing in the German market | October 15, 2015 | | Page 34
Slide 35: We secure national leadership and focus on international growth
1 2 3 4 5 We secure our national leadership and focus on international growth Key market dynamics Our strategic priority Video entertainment is becoming a local and global market (YouTube, We build a global video player Facebook) with key content verticals around Studio71 and CDS, Advertising target
Slide 36: We create a global video player around Studio71 and CDS
1 2 3 4 5 We create a global video player around Studio71 and CDS #5 globally #1 + #6 = Germany globally 360m >2.1bn >2.5bn monthly video views monthly video views monthly video views Studio71 and CDS are our foundation for further global expansion – both organically and via further international ac
Slide 37: We build our own Ad Tech stack
1 2 3 4 5 We build our own Ad Tech stack to broaden our AdVoD business Demand Side Exchange/ Supply Side Ad server Sales house Publisher Platform Marketplace Platform + mandates Data Management Platform Virtual Minds and Smartstream are our nucleus for a European alternative in programmatic to broad
Slide 38: In SVoD we secure our national top 3 position
1 2 3 4 5 In SVoD we secure our national top 3 position Investments in binge New distribution and exclusive content partnerships Top binge series 2016 +101% Total video views2) Top exclusive series 2015 +79% SVoD subscribers1) +49% Total user base3) | October 15, 2015 | 1) End of period H1 2015 vs.
Slide 39: Our strategy Outlook
Our strategy Outlook 1 2 3 4 5 How do we How do we How do we How do we What is our accelerate build and become a build new financial our growth grow new global player adjacent outlook? with M&A? commerce in video? ecosystems? verticals? | October 15, 2015 | | Page 39
Slide 40: We have built an ecosystem around music in Adjacent
1 2 3 4 5 We have built an ecosystem around music in Adjacent … Live events Ticketing Our TV reach and marketing competence Music label Marketing is our key benefit to build ecosystems Cooperation Artist labels management | October 15, 2015 | | Page 40
Slide 41: Replicate this success with new Adjacent ecosystems
1 2 3 4 5 … and will replicate this success with new Adjacent ecosystems Key market dynamics Our strategic priority TV media proven to be key marketing We will further organically grow our instrument for entertainment topics music ecosystem and continue to drive its digitization We will replicate th
Slide 42: Sports will be our next ecosystem
1 2 3 4 5 Sports will be our next ecosystem – and we already started it Digital video Sports management, TV/rights platforms/products events and ticketing We are leveraging synergies with our commerce assets around sports, e.g. Gymondo | October 15, 2015 | | Page 42
Slide 43: Our sports ecosystem connects all dots for superior monetization
1 2 3 4 5 Our sports ecosystem connects all dots for superior monetization Production/compilation Creation of own sports content On-site sponsoring (e.g. video blogs, editorial content) Digital platforms On-site advertising PPV/subscription (posters, displays, etc.) or advertising Ticketing P7S1 TV
Slide 44: Our strategy Outlook
Our strategy Outlook 1 2 3 4 5 How do we How do we How do we How do we What is our accelerate build and become a build new financial our growth grow new global player adjacent outlook? with M&A? commerce in video? ecosystems? verticals? | October 15, 2015 | | Page 44
Slide 45: Outlook: How we need to grow to reach our new CMD target
1 2 3 4 5 Outlook: How we need to grow to reach our new CMD target We need to realize a CAGR of 16% for 2015-2018 to reach our new target – and have proven to grow faster [ext. D&A revenues in EURm] ~16% CAGR2) 1,535 49% +600 CAGR1) 908 335 935 Actual H1 2015 LTM New 2012 pro forma3) 2018 target 1)
Slide 46: Our D&A presenters you will meet today
Our D&A presenters you will meet today Sascha Jörg Claas Daniel Markan Christof Dr. Sebastian Reza van Holt Trouvain van Delden Raab Karajica Wahl Weil Izad M4R/E Travel Commerce Commerce 7NXT Video MCN MCN | October 15, 2015 | | Page 46
Slide 47: SevenVentures
October 15, 2015 Growing to the next level Capital Markets Day 2015 Sascha van Holt SevenVentures | October 15, 2015 | | Page 47
Slide 48: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Sustained market Accelerated global Strengthened leadership1) import strategy operational skills No.1 media investor in Germany | October 15, 2015 | 1) Based on estimated gross media volume | Page 48
Slide 49: SevenVentures has grown strongly in all dimensions
SevenVentures has grown strongly in all dimensions +28% +458% +26% Total revenue International # of active growth1) revenue growth1) deals2) 1) H1 2015 vs. PY | Page 49 | October 15, 2015 | 2) Ø of period H1 2015 vs. PY
Slide 50: We accelerate growth of digital companies
We accelerate growth of digital companies … Driving brand recognition Media investment Improving sales and marketing economics Providing additional liquidity Cash investment Offering flexible deal structures Facilitating go-to-market through our launch pad Operational support Leveraging our European
Slide 51: Helped to build category leaders in Germany
… and have helped to build category leaders in Germany Zalando Lieferando Tirendo | October 15, 2015 | | Page 51
Slide 52: How we benefit from performance-based investments
How we benefit from performance-based investments What we get from M4R/E deals Equity Exit participation Revenue share Minimum guarantee We confirm our outlook to generate >EUR 10m in exit proceeds p.a. | October 15, 2015 | | Page 52
Slide 53: Our key strategic initiatives going forward
Our key strategic initiatives going forward 1 Continue our successful global import strategy 2 Internationalize SevenVentures 3 Diversify our investment approach | October 15, 2015 | | Page 53
Slide 54: We have the know-how to be the importer of choice
1 2 3 Global import strategy We have the assets and know-how to be the importer of choice Shopkick – import case Market entry support for leading US mobile customers rewards player Operations, local team and retail network set up within six months TV campaign enabled growth to 500k users within two
Slide 55: Immediate proof of our global import strategy
1 2 3 Global import strategy We had immediate proof of our global import strategy New New 2015 2015 15% international share in 2015E Leading US Market Leading Market Premium Market Leading mobile leader in European leader in life-style leader in Scandinavian customer wearables online shoe fashion br
Slide 56: We are now internationalizing SevenVentures
1 2 3 Internationalization We are now internationalizing SevenVentures … European Media Alliance Media Alliance and strategic partner Operational support Next partner to join Scandi., CEE Country specific market know-how Operational services New Benelux UK >250m + Own and 3rd party & Finland Top tie
Slide 57: Extending our investment approach
1 2 3 Investment approach … and are extending our investment approach M4R/E Operational support Pure media investments to Launchpad to accelerate market accelerate growth of later-stage entry by combining our start-ups operational skills and marketing platform Direct cash investments Fund seeding (C
Slide 58: We are the leading partner for fast growing digital companies
We are the leading partner for fast growing digital companies Media Operational Cash investments support investments Offering reach and Creating a network of Seeding a family of WHAT? eyeballs all over Europe experienced operators funds with mainly 3rd all over Europe party cash Owned inventory Mana
Slide 59: 7Travel
October 15, 2015 Growing to the next level Capital Markets Day 2015 Jörg Trouvain 7Travel | October 15, 2015 | | Page 59
Slide 60: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Market Etraveli First steps into Operational outperformance acquisition internationalization excellence outperforming the market1) by ~2.1x 40 Strong TV countries synergies 1) Market based on weighted average for relevant market segments | Page
Slide 61: We have become a segment leading online travel powerhouse
We have become a segment leading online travel powerhouse … >3.1m >20% >1.6bn >165% Reach of German Total Transaction TTV growth #Transactions internet population Value (TTV) vs. PY1) 1) FY 2015 estimates | Page 61 | October 15, 2015 | Note: “Pro forma” including Etraveli
Slide 62: Significantly outgrowing the market
… significantly outgrowing the market Online Travel market for Growth rate comparison packaged tours independent VTO’s2) Growth rate 2015E vs. 20141) ~EUR 4bn EUR 0.7bn ~2.1x ~12 % Travel market for hotel ~6% Online flight ~EUR 3bn market ~EUR 9bn Car rental Market market ~EUR 0.6bn 1) Market based
Slide 63: Three key strategic initiatives going forward
Three key strategic intiatives going forward 1 Continue “String of Pearls” M&A strategy along customer journey 2 Ensure operational excellence with unique vertical approach 3 Push revenue growth through TV leverage | October 15, 2015 | | Page 63
Slide 64: We offer a unique travel customer journey
1 2 3 “String of Pearls“ We offer a unique travel customer journey Customer journey Inspiration Mission We want to become a In Destination European online travel market leader, using P7S1 TV leverage to Search build a portfolio of trusted brands along the Booking customer journey | October 15, 2015
Slide 65: Just signed: We acquired a leading European OTA for flights
1 2 3 “String of Pearls“ Just signed: We acquired a leading European OTA1) for flights What Etraveli is Why we acquired it 100%2) We complement our online travel vertical and close the blank spot “flights” in our customer journey Etraveli enables a profitable, low risk internationalization of Travel
Slide 66: Etraveli will turn our vertical into an international player
1 2 3 “String of Pearls“ Etraveli will turn our vertical into an international player Importer of choice Building new brand for Etraveli meta business in Germany – leveraged by TV | October 15, 2015 | | Page 66
Slide 67: Our vertical approach creates synergies
1 2 3 Operational Excellence Our vertical approach creates synergies – and thus further value Example: Travel vertical Cross-vertical lead gen and traffic push >25% contribution to revenue growth1) Marketing excellence (CRM, SEO, SEA) Joint WKZ initiatives (ad allowance) >35% contribution to rec. EB
Slide 68: Operational excellence is key to push synergies
1 2 3 Operational Excellence Operational excellence is key for us to push synergies Selected results of centers of excellence • Uplift in newsletter opens and CRM1) optimization clicks, e.g. up to 300% for weg.de SEO2) excellence • Overall CVR improvement • Automated landing page SEA3) performance o
Slide 69: TV presence allows us to optimize online ad costs
1 2 3 TV leverage TV presence allows us to optimize online ad costs Average Cost-per-Click per segment1) [Germany, in EUR] ∆-83% ∆-56% ∆-45% 0.42 2.82 1.52 0.83 1.25 0.07 Dynamic virtual Rental car German online tour operators comparison package tour 1) Google brand search cost ||October October 15,
Slide 70: And the journey continues
And the journey continues … Share/past trip On trip/in destination Inspiration | October 15, 2015 | | Page 70
Slide 71: Beauty & Accessories
October 15, 2015 Growing to the next level Capital Markets Day 2015 Daniel Raab Beauty & Accessories | October 15, 2015 | | Page 71
Slide 72: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Buy & accelerate approach We acquired 2 majorities in Q2 2015 (Flaconi, Amorelie) We started a partnership with a strategic investor for Valmano (51% share) We leveraged synergies and optimized our companies, e.g. reporting process, pricing opti
Slide 73: For new verticals, we target brand-driven (niche) segments
For new verticals, we target brand-driven (niche) segments Segment selection criteria Physical goods cluster • Growth markets with local edge, that are frag- Established mented/difficult to enter for global digital players • Our TV assets can be successfully leveraged, Beauty & Accessories providi
Slide 74: We started with a media for equity deal
We started with a media for equity deal Flaconi investment overview Flaconi history P7S1 share [in %] Media for equity deal with cash component Cash deal to No. 1 pure-play beauty retailer in acquire 100% Germany stake 100 Founded in July 2011, assortment 47 P7S1 share extended to skincare and hairc
Slide 75: Key for success: Our playbook
Key for success: Our playbook playbook 2. Marketing 3. Data analytics & 4. Shared services & 5. Tech & expert 1. TV expertise competence process excellence negotiation network • Creation of perfect • Best-in-class • Controlling, Reporting • Legal & Tax support • Tech/mobile services TV spot marketin
Slide 76: We develop our companies based on playbook levers
We develop our companies based on playbook levers 1. TV expertise 2. Marketing competence Example: Average TV CPV in 2014 Example: Price tests and elasticity analysis Strong TV performance Identifying product improvements throughout characteristics resulting 2014 in high, medium, low price elasticit
Slide 77: We drive growth with joint forces
We drive growth with joint forces Joint forces Proven success Visits1) Sustainable business models led by strong teams + +95% TV power to drive traffic + 7Commerce playbook to optimize business H1 2014 H1 2015 | October 15, 2015 | 1) Visits Beauty & Accessories: Flaconi, Amorelie and Valmano | Page
Slide 78: We know how to do marketing efficiently
We know how to do marketing efficiently More traffic at less cost Higher conversion and lower returns H1 2015 vs. H1 2014 H1 2015 vs. H1 2014 +74% +27% -30% -37% Total visits Cost per visit Conversion rate Returns1) We optimize crucial online marketing KPIs without trade-offs | October 15, 2015 | 1)
Slide 79: We know how to manage e-commerce operations
We know how to manage e-commerce operations Order increase with low inventory Lower cost and better selection H1 2015 vs. H1 2014 H1 2015 vs. H1 2014 +153% +26% +15% -19% Revenues Inventory (end of June) Cost per order Selection (June) We optimize crucial e-commerce operations KPIs without trade-off
Slide 80: Portfolio companies with significant operational success
Our portfolio companies with significant operational success H1 2015 vs. H1 2014 H1 2015 vs. H1 2014 +173% +145% +79% +12% Revenues Marketing costs1) Revenues Marketing costs1) | October 15, 2015 | 1) Excluding TV Media | Page 80
Slide 81: We follow a phased approach for further scale-up
Key strategy: We follow a phased approach for further scale-up Beauty & Accessories Further expansion International • Offline retail partners • Licensing/partnership to develop National (DACH) • Expand German business models to online business for offline retailer European markets • Direct sales (e.
Slide 82: Online Comparison
October 15, 2015 Growing to the next level Capital Markets Day 2015 Claas van Delden Online Comparison | October 15, 2015 | | Page 82
Slide 83: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Acquired 80% Acquired add. 25% stake in Verivox stake in Preis24 New vertical “Online Comparison” #1 in energy comparison #1 in mobile deals #1 positions in key segments Strengthened #1 Broadened product position of moebel.de portfolio of 12Auto
Slide 84: Core assets Verivox & moebel.de are on a strong growth track
Our core assets Verivox & moebel.de are on a strong growth track Our core assets show a strong performance … … within a highly attractive market3) Market position Revenues [in EUR m] +8% 920 #1 Visits +48%1) CAGR 270 685 Product Revenues +69%1) comparison 200 market Services 650 #1 Contracts +34%2)
Slide 85: Getting close to EUR 1bn total transaction value
We are getting close to EUR 1bn total transaction value LTM1) >EUR >62m >1.5m (+41%) (+21%) 950m (+20%) Total Visits2) Transactions2) Transaction Value2) 1) Total Transaction Value generated by Online Comparison assets in last twelve months (June 30, 2015); excl. 12Auto Group; transaction | October
Slide 86: Our three key strategic initiatives
Our three key strategic initiatives Continue “String of Pearls” M&A strategy to enter additional market 1 segments 2 Drive sales growth of portfolio companies via TV advertising 3 Create new advertising solutions for ad customers | October 15, 2015 | | Page 86
Slide 87: Continue “String of Pearls” M&A strategy
1 2 3 Continue “String of Pearls“ M&A strategy Continue “String of Pearls” M&A strategy to enter new segments Market position Telco Home & Living Energy Under evaluation (+ new segments) (e.g. Fin. Services) #1 #1 #1 … Asset 2012: M4E (60%)1) 2013: M4E (16%)1) 2015: Cash (80%)1) … Deal 2015: Cash (+
Slide 88: Drive sales growth via TV & online marketing playbook
1 2 3 Drive sales growth Drive sales growth of assets via TV & online marketing playbook Our ”TV & online marketing playbook”… …drives improvement of TV performance Indexed TV cost per visit1) Optimized, cost-per-visit based campaign -35% planning 100 65 Benchmarking data from P7S1 portfolio (KPIs,
Slide 89: Additional innovative advertising solutions for ad customers
1 2 3 Create new advertising solutions Additional innovative advertising solutions for ad customers Customized advertising solutions (examples) How it works P7S1 asset Close collaboration of Energy SevenOne Media and Online Comparison assets Partner Customized advertising package incl. Online + TV C
Slide 90: 7NXT
October 15, 2015 Growing to the next level Capital Markets Day 2015 Markan Karajica 7NXT | October 15, 2015 | | Page 90
Slide 91: 7NXT: Our new hub for video innovations
7NXT: Our new hub for video innovations Three selected pillars of Identify and accelerate innovative 7NXT Objective digital video businesses Guiding Mobile & social, smart technology principles and lean operations Diverse Subscriptions, one-off payments, revenue advertising financed, e-commerce stre
Slide 92: 7NXT as TV leveraged business with three strategic pillars
7NXT as TV leveraged business with three strategic pillars Online Augmented and 1 coaching 2 virtual reality 3 New TV 50m 11m members in global virtual fitness clubs reality users in Europe1) in 20162) Launch multiple pay Establish own augmented/ Invest in new TV content online courses and well- vir
Slide 93: Unique portfolio of top online courses successfully launched
1 2 3 Online coaching Unique portfolio of top online courses successfully launched Inter- national launch 64k 7k 1.4m 76k 20k 282k 189k 133k 217k 162k 344k 18k fans follower fans follower subs fans follower subs fans follower fans follower 10-week-program: EUR 79 8-week-program: EUR 79 12-week-progr
Slide 94: Next steps: Build user centric health and wellbeing eco-system
1 2 3 Online coaching Next steps: Build user centric health and wellbeing eco-system Upcoming programs User centric eco-system Stay in shape with former Christine kickbox world champion Theiss 10-week program: EUR 79 Q4 2015 Inter- national Urban dance school launch Nikeata • 2nd largest 12-week cha
Slide 95: Creating new user experience with augmented and virtual reality
1 2 3 Augmented and virtual reality Creating new user experience with augmented and virtual reality Virtual Virtual Tech partner + P7S1 Entertainment content Proprietary technology E-commerce Augmented Sales & media power Building the leading B2C hub for AR/VR content in GSA | October 15, 2015 | | P
Slide 96: Invest in new TV content categories
1 2 3 New TV Invest in new TV content categories Content production eSports 3m >200m video views global season 1 audience1) Exclusive family sitcom produced in TV quality by Enter into global eSports market by partnering 7NXT for target group 30+ (season 2 launched Oct 1) with key market participant
Slide 97: AdVoD
October 15, 2015 Growing to the next level Capital Markets Day 2015 Christof Wahl AdVoD | October 15, 2015 | | Page 97
Slide 98: We are positioned along the entire value chain
We are positioned along the entire value chain Content creation Aggregation Distribution Monetization .de New AdVoD .de New New New New MCN PayVoD | October 15, 2015 | | Page 98
Slide 99: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Secured #1 in Acquisition of Acquisition of Acquisition of premium video1) Virtual Minds Smartstream.TV Putpat.TV | October 15, 2015 | 1) 43% gross in-stream market share in Germany H1 2015 (Source: Nielsen Media Research) | Page 99
Slide 100: We have significant digital reach
We have significant digital reach 31m 25m >3m 880k 500k International partnership Test cases for special 13k 11k under target groups subscribers storyviews subscribers total fans followers followers followers in 14 days in 24 hours negotiation ongoing 1st test case 1st test case 220 152 34 30 9 6 3
Slide 101: Our CDS acquisition is driving growth on a global scale
Our CDS acquisition is driving growth on a global scale > 11bn 49m 35m (+543%) (+70%) (+135%) Video views Monthly UU Monthly video UU in H1 2015 in H1 20151) in H1 20151) 1) Sources: AGOF Internet Facts June 2015 (10+) and ComScore Video Metrix (US desktop only) | October 15, 2015 | Note: CDS - pro
Slide 102: Strong footprint in the German AdVoD market
We have a strong footprint in the German AdVoD market H1 2015, Germany P7S1 Premium video ad market1) 43% market share Total video ad market2) 16% 1) Gross market: Nielsen Media Research (excl. YouTube/Facebook) | Page 102 | October 15, 2015 | 2) Net market: P7S1 estimate (incl. YouTube/Facebook)
Slide 103: Video advertising market is highly attractive
Video advertising market is highly attractive … Digital advertising market (net) [in EUR bn]1) CAGR +9% 2014-2018: CAGR -12% +7% Online video +11% advertising with highest growth 2) +35% rate of +35% 2014 2018E 1) Source: Magna Global and P7S1 estimate | Page 103 | October 15, 2015 | 2) Online video
Slide 104: Mainly driven by mobile
… and mainly driven by mobile Digital advertising market (net) [in EUR bn]1) CAGR +9% 2014-2018: CAGR -2% Mobile advertising with +47% highest growth rate of +47% 2014 2018E | October 15, 2015 | 1) Source: Magna Global and P7S1 estimate | Page 104
Slide 105: The battle for eyeballs is getting more competitive
The battle for eyeballs is getting more competitive Global internet giants are Social platforms are enriching pushing into AdVoD their services with video Print publishers are telling Digital first content players 360° stories have their own destinations | October 15, 2015 | | Page 105
Slide 106: Key strategic initiatives for AdVoD going forward
Key strategic initiatives for AdVoD going forward Build local entertainment verticals with strong editorial content to 1 form sticky user community and exploit commerce revenues Differentiate by investing in own IP base in digital video – short form & 2 long form – and enlarge global reach of our sh
Slide 107: Build local entertainment verticals with strong editorial content
1 2 3 4 5 Local entertainment verticals Build local entertainment verticals with strong editorial content MEN HIGH FASHION COSMETICS CARS Strong editorial content Deeply enrooted in special interest target group Generate intense brand emotions Exploitation of commerce Become #1 Launch 1st video Ente
Slide 108: Invest in own IP base in digital video
1 2 3 4 5 Own IP Invest in own IP base in digital video and enlarge global reach We are specialists in developing unique digital video content Next generation content IP creators Global roll-out of key formats ROCKETJUMP 7.7m Subs GRONKH 3.8m Subs FOWLER SISTERS 4m Subs Accelerate creation of own IP
Slide 109: Create 360° user experience around our leading TV formats
1 2 3 4 5 360° user experience Create 360° user experience around our leading TV formats Scale original & viral content 8.6m Social media total online • Make TV content viral & snackable video views for mobile & social usage (<120s) • Production by newly created, dedicated “Short Clip Studio” unit 5
Slide 110: Create own European alternative in Ad Tech
1 2 3 4 5 Ad Tech Create own European alternative in Ad Tech Virtual Minds Smartstream.TV Ad blocker solution • Comprehensive digital Ad • Secure position in growing • Increasing ad blocker rate Tech stack for programmatic lower price video audience in Germany (14m unique advertising segment (long-t
Slide 111: We learn from next generation companies
1 2 3 4 5 Video live streaming and virtual reality We learn from next generation companies for our future business Minority Minority invest invest Next generation video live streaming platform Production and distribution of cinematic targeting professional content creators virtual reality content Li
Slide 112: MCN
October 15, 2015 Growing to the next level Capital Markets Day 2015 Dr. Sebastian Weil, Reza Izad MCN | October 15, 2015 | | Page 112
Slide 113: What we do at Studio71
What we do at Studio71 Aggregation Development Channel management Advanced traditional and talent scouting and production and cross promotion and concept sales | October 15, 2015 | | Page 113
Slide 114: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Signed more top Realized bigger Excelled at ping- Built best practice creators productions pong with P7S1 branded content Became #1 MCN Acquired #6 Now #5 MCN in Germany1) MCN globally2) in the world2) + = GERMANY GLOBAL | October 15, 2015 | 1)
Slide 115: We grew strongly and are now market leader in Germany
We grew strongly and are now market leader in Germany Strong growth of VV continued No.1 position in Germany Studio71 video views, August 20151) ComScore MCN ranking, August 20152) [in m] +88% 360 growth vs. PY 258 270 193 168 124 41 22 Sep Dec Mar Jun Aug Dec Mar Aug Studio 71 QuizGroup Maker TubeO
Slide 116: Strong performance along our major KPIs
Strong performance along our major KPIs 360m 31m 1.8m +88% +132% +41% Monthly video Total Average VV/ views1) subscribers2) channel3) 1) August 2015 vs. PY 2) August 2015 vs. PY 3) Average VV/Channel last 3M on Sept. 29, 2015 vs. PY, only channels | Page 116 | October 15, 2015 | in network since Aug
Slide 117: We are now a Top 5 global MCN
We are now a Top 5 global MCN with a premium market position Premium market position … … with highest reach per channel1) High 0m 1m 2m GLOBAL (>1bn) Global aggregator Global premium MCN MCN 1,300 Channels Ø 1.8m VV/channel >2.5bn >50,000 Channels monthly VV Total reach >15,000 p.m. Channels Niche/l
Slide 118: The global MCN market has become more complex
The global MCN market has become more complex Internationalization of Professionalization 1 MCN business 2 of content creation Push towards branded Tech & data becoming Fragmentation of 3 entertainment 4 more important 5 distribution landscape | October 15, 2015 | | Page 118
Slide 119: Five key strategic initiatives to become a top global MCN
Our five key strategic initiatives to become a top 3 global MCN Internationalization: Further integrate CDS & Studio71, M&A of 1 additional MCNs & partnering with broadcasters Content Creation: Global roll-out of key formats, accelerate creation 2 of new IP Branded Entertainment: Access marketing bu
Slide 120: Acquisition of CDS was a major step towards internationalization
1 2 3 4 5 Internationalization Acquisition of CDS was a major step towards internationalization Currently 7 offices on two continents | October 15, 2015 | | Page 120
Slide 121: Specialists in developing unique web-only content
1 2 3 4 5 Content creation We are specialists in developing unique web-only content … Top Studio71 and CDS properties New & upcoming web formats Season 2 TXT COMMITTEE | October 15, 2015 | | Page 121
Slide 122: Home to some of the most famous creators in the world
1 2 3 4 5 Content creation ... and are home to some of the most famous creators in the world Beauty & Comedy Enter- Sports & Music & Kids & Gaming Lifestyle & Pranks tainment Auto Urban Family ROCKETJUMP FOWLER SISTERS EPIC MEAL TIME LOGAN PAUL KEITH & KEVIN BOYCE AVE. FRED 7.7m Subs 4m Subs 6.9m Su
Slide 123: Taking our core competencies to the next level
1 2 3 4 5 Content creation Now we take our core competencies to the next level Next generation of IP creators in our network – moving to the big screens Big entertainment properties – going digital with the help of Studio71 MAXIMUM RIDE by James Patterson | October 15, 2015 | | Page 123
Slide 124: We are global Branded Entertainment experts
1 2 3 4 5 Branded Entertainment We are global Branded Entertainment experts … Coke TV Rhett & Link/Wendy’s • Over 17.5m video views on YouTube • Over 7m video views on YouTube • More than 200k YouTube subscribers • More than 600k Facebook fans & 450k Twitter followers reached | October 15, 2015 | |
Slide 125: Strong digital service capabilities
1 2 3 4 5 Branded Entertainment … and have built up strong digital service capabilities Best-in-class channel management & productions for our broadcasting clients … +279% Subs ... as well as for brand partners – realizing strong performance uplifts | October 15, 2015 | | Page 125
Slide 126: Our technology is ready for the future of the MCN business
1 2 3 4 5 Tech & Data Our technology is ready for the future of the MCN business Best-in-class business intelligence: Studio71 tools & analytics Employee Tools for dash- creators boards | October 15, 2015 | | Page 126
Slide 127: Broaden distribution towards new platforms
1 2 3 4 5 Distribution We constantly broaden our distribution towards new platforms We distribute our content on various platforms … … and have strong negotiation power towards further video distribution partners | October 15, 2015 | | Page 127
Slide 128: PayVoD
October 15, 2015 Growing to the next level Capital Markets Day 2015 Christof Wahl PayVoD | October 15, 2015 | | Page 128
Slide 129: Key achievements since last year’s Capital Markets Day
Key achievements since last year’s Capital Markets Day Closed key New/extended Exclusive Expanded live distribution deals studio deals hit series offering EMPIRE WWE New THE 100 UFC Closed new output Closed landmark Expanded deal with HBO for Secured new distribution deals “Live Fighting EST; extend
Slide 130: maxdome has grown strongly in all dimensions
maxdome has grown strongly in all dimensions +79% +101% +49% SVoD Total video Total user subscribers1) views2) base3) | October 15, 2015 | 1) H1 2015 vs. PY 2) H1 2015 vs. PY 3) Active unique users: Average per month H1 2015 vs. PY | Page 130
Slide 131: German PayVoD market with strong growth outlook
German PayVoD market with strong growth outlook … maxdome will prevail as key PayVoD player Market size SVoD Market size TVoD/EST [in EUR m] [in EUR m] +45% 575 +25% 265 187 137 2015E 2018E 2015E 2018E Key players Key players | October 15, 2015 | Source: P7S1 analysis based on Goldmedia, GfK, forsa,
Slide 132: Digitization of home video in Germany accelerates
… as the digitization of home video in Germany accelerates Digital PayVoD will surpass physical video in Germany by 2019 Market size: Total home video market in Germany [in EUR m] 1,875 1,925 1,950 1,800 1,825 1,850 18% 25% 34% 45% 57% 66% Digital PayVoD 82% 75% 66% 55% 43% 34% Physical video 2015E
Slide 133: SVoD market is ready to take off
Especially the SVoD market is ready to take off German penetration … but several new players3) … as notable comparably low … entered the market … growth to come until 2018 SVoD TV household penetration 2006 market players SVoD TV household penetration5) [in %] [in %] 451) +47% 2015 CAGR 254) 221) 72
Slide 134: SVoD market trends have redefined user expectations
SVoD market trends have redefined user expectations … Binge viewing & movies Connected devices Need to offer all episodes & Growing penetration of seasons of series; Movies are network enabled device for key for driving new users in simultaneous VoD experience Lean user experience Distribution Simpl
Slide 135: Demand of traditional distributors to offer SVoD
… and created demand of traditional distributors to offer SVoD All-in-one Set-Top-Box solution All-in-one Set-Top-Box solution for linear TV & leading SVoD service for linear TV & leading SVoD service maxdome exclusive and maxdome exclusive and fully integrated SVoD service fully integrated SVoD ser
Slide 136: maxdome’s strategy is focused on driving SVoD
maxdome’s strategy is primarily focused on driving SVoD Strategic focus Core: SVoD Upsell: TVoD/EST PRODUCT Core of user experience and Sharpen value proposition and drive Bread & Butter product feature upgrades upsell into SVoD user base Focus on “binge viewing” for top CONTENT US and exclusive ser
Slide 137: maxdome’s key strategic initiatives for next 12 months
maxdome‘s key strategic initiatives for next 12 months 1 Secure further landmark distribution deals 2 Continue securing new exclusive content and more binge series 3 Continue optimizing quality of service and implement new product features | October 15, 2015 | | Page 137
Slide 138: Secure further landmark distribution deals
1 2 3 Landmark distribution deals Distribution is key: Secure further landmark distribution deals maxdome with ~100% OTT coverage & innovative partnerships in place Device coverage Distribution partners | October 15, 2015 | | Page 138
Slide 139: Secure new exclusive content and more binge series
1 2 3 Exclusive content and binge series Secure new exclusive content and more binge series maxdome offers key exclusive content and a selection of top binge series Top exclusive series of 2015 Top binge series for 2016 maxdome will continue to cover the THE 100 majority of top US series Examples EM
Slide 140: Continue optimizing quality of service and introducing features
1 2 3 Optimizing quality of service Continue optimizing quality of service and introducing features We established great new features in 2015; many more to come in 2016 Next episode Download manager Premium detail page Premium cover flow Personalization New mobile players Mobile UX improvements | Oc