LTM Q ,199m. 726m. 272m 19% 3,089m x. 2.1x

Transcription

1 September 2018

2 2011 LTM Q CAGR (2011 LTM Q2 2018) REVENUES 1) EUR 2,199m EUR 4,000m +10% ADJUSTED EBITDA 1) EUR 726m EUR 1,051m +6% ADJUSTED NET INCOME EUR 272m EUR 547m +11% REVENUE SHARE OUTSIDE TV AD 19% 48% Total 11-Q2 18: +29%pts MARKET CAPITALIZATION 3) EUR 3,089m EUR 5,063m +8% SHARE PRICE 3) % EV/EBITDA1) MULTIPLE 2) 6.8x 7.4x Total 11-Q2 18: +0.7x LEVERAGE RATIO 3) 2.1x 2.1x Total 11-Q2 18: +/-0.0x DIVIDEND PAID 3) Total EUR 246m EUR 442m 11-Q2 18: EUR 3.3bn Note: underlying net income changed to adjusted net income in FY ) Note: excl. International TV and Diversification (SBS Group). 2) EV/EBITDA multiple as reported by Bloomberg. 3) All data referring to end of period. 2

3 Ambition Leading European multi-channel entertainment products and ad sales house Leading global content, talent & IP company #1 omnichannel platform for consumer services & lifestyle brands in Europe 3

4 Leadership in TV audience share & ad monetization in GSA 1) Leader in addressable TV Germany-based full AdTech stack Independent production company globally 2) Digital Studio (Studio71) 3) Strong set of leading commerce assets in GSA 1) 1) GSA: Germany, Switzerland and Austria. 2) Internal estimate based on industry figures. 3) Source: ComScore YouTube Partners Report Feb 2018 (content views, desktop only, excl. music MCNs & Netflix, Maker not listed, as well as Asia/Russia), Studio71 GER & Studio71 US combined 4

5 +10% CAGR +6% CAGR Mix effect Note: Continuing operations (2011) 5

6 ADJUSTED NET INCOME & DIVIDEND [in EUR m] ~290 2) %/+10% CAGR 1) DIVIDEND PAY OUT Dividend per share: Total dividend pay-out 3) : +6.6% dividend yield 4) Pay-out ratio: Adjusted net income Dividend payment 1) Underlying/adjusted net income CAGR %, dividend CAGR % (note: underlying net income changed to adjusted net income in FY 2017). 2) Normalized dividend estimate based on average dividend pay-out ratio of c. 82%, actual dividend pay-out of EUR 1,201.4m included disposal related dividend increase. 3) Dividend pay-out calculated on the basis of 228.9m shares (4.1m treasury shares not entitled to a dividend) 4) Based on share price of EUR on May 16,

7 NET M&A CAPEX M&A FCF ROI 1) excl. [in EUR m] ~12% ~10% ~10% incl. excl. proceeds of EUR 469m ) FCF-ROI calculated as proportional FCF for respective fiscal year 2017 estimate (proportional to ownership share) divided by invested cash to date based on active portfolio (incl. budgeted IC loans at year-end, loan redemption and capital increases), 2017 excl. Etraveli and Comvel (deconsolidated in Q3 2017). FCF partly external FCF (i.e. excl. internal TV media expenses (e.g. for NCG assets), as per 2017 (Smartstream FCF on entity basis). FCF excludes cashflows from obtaining control of subsidiaries and other businesses. Excl. companies that have not been fully consolidated for 12 months in 2017 the respective fiscal year. 7

8 Network and search support Multiple joint expert workshops Sharing and implementing best practices Joint identification of attractive deal targets 8

9 NEGOTIATIONS WITH WORKERS COUNCIL CONCLUDED Agreement in June 2018 IMPLEMENTATION OF EFFICIENCY MEASURES ONGOING New organizational structures and headcount reduction, SG&A already reduced in H SAVINGS TARGET BY 2020 CONFIRMED Net savings target of EUR 50m in terms of operating costs by FY 2020 EXPECTED DISTRIBUTION OF TARGETED SAVINGS First positive effect of EUR 10m in FY 2018, EUR 20m in FY 2019 and EUR 20m in FY

10 Please note: 2018 financial targets still include maxdome, 7NXT and tropo (to be deconsolidated in H2 2018). 1) of adjusted net income 10

11 REPORTED REVENUES FY 2017 M&A PRO-FORMA REVENUES FY 2017 MID-TERM GROWTH MID-TERM MARGIN 1) Entertainment EUR 2,737m Entertainment EUR 2,745m +0-5% 30-35% Content Prod. & Global Sales EUR 523m Content Prod. & Global Sales EUR 543m +5-10% 5-10% Commerce EUR 818m Commerce EUR 717m % 15-20% Group EUR 4,078m (disposal) Group EUR 4,005m mid singledigit % mid-20s % 1) Adj. EBITDA margin calculated as entity adj. EBITDA/ext. revenues 11

12 Note: Revenue growth potential 2022 vs. 2017; including potential bolt-on acquisitions. 12

13 1) Revenue growth potential 2022 vs. 2017; incl. potential bolt-on acquisitions. 2) Savings by 2019/20 vs. addressable cost base as of H LTM, leading to more moderate cost development of overall Entertainment segment. 13

14 Strong Entertainment/ TV business Attractive synergistic diversification Strong revenue & value growth potential 14

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16 [A 14-49; in %] Strong July despite FIFA World Cup Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h. Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. 16

17 [A 14-49; in %] Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h. Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. 17

18 MALE A % A % A % OLD YOUNG F % F % M % M % FEMALE Base: All German TV households (German-speaking), Mon-Sun, 3-3 h Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 18

19 226 MIN 238 MIN 185 MIN 160 MIN 216 MIN 218 MIN Overall stable live TV viewing 19

20 Alle gegen 1 Master of Dance New Daily Access Time QUALITY OF U.S. OUTPUT ROI OF INCREMENTAL LOCAL INVESTS AVAILABILITY OF AFFORDABLE RIGHTS LOCAL CONTENT STRATEGY OF ALL COMPETITORS Duell um die Welt The Voice of Germany Global Gladiators Up to 15.7% Up to 27.1% Up to 11.1% Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h, FY Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. ProSieben/Willi Weber (Alle Gegen (Masters of Dance), SAT.1/André Kowalski, Willi Weber (Endlich Feierabend, Alles oder Nichts), SAT.1/ProSieben/Richard Hübner; (The Voive of Germany, ProSieben/Richard Hübner (Global Gladiators) 20

21 SUPER BOWL NFL E-SPORTS Up to 50.9% Up to 15.6% Up to 8.8% WRESTLING MIXED MARTIAL ARTS DTM Up to 5.7% Up to 1.8% Up to 9.6% Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h, H Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. 21

22 Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h, FY Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. Incremental reach based on video views (not unique) through digital offerings (including channel web & app, 7TV web & app, HbbTV, SmartTV without syndication and youtube); TV basis: Z 3+, TV contacts with >1 min. of viewing, multiple views per user possible; source: AGF in cooperation with GfK/TV Scope/P7S1 TV Deutschland/Google Analytics/Webtrekk. ProSieben/Richard Hübner; ProSieben/Martin Ehleben 22

23 1) Product placement in print: only Deichmann and GNTM. 23

24 [Market share contribution, in %] Local commissioned program % U.S. license program 56 Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 24

25 More selective content picking rights (qualifiers) KEY LEVERS TO OPTIMIZE STUDIO DEALS Return rights for individual titles Improved sublicensing rights for titles with low P7S1 fit Extensions only against reduction of series commitment Flexible lifetime-of-series opt-outs 25

26 IPTV Satellite Cable DVB-T2 Note: HH = households 1) Source: Astra Monitor report 2017 published 04/2018 (adjusted data base on new official population statistics) 2) Total Entertain customers of DTAG (IP and Satellite via hybrid STBs): 3.14m, Source: Deutsche Telekom Q4/2017 Results 26

27 HD FTA subscriber development [in m] m full-year target m vs. H Q Q Q Q Q Q Q ) HD penetration based on AGF TV HH 2017: 38.58m. 27

28 OTT/ Mobile HD HD Satellite Technical reach: 17.7m HH 2) OTT / Mobile (linear signal) Instant Restart 1) Cable Technical reach: 16.4m HH 2) Phones / tablets (apps) Networkbased Digital Video Recorder (NDVR) 1) Well prepared for UHD 3) REC IPTV Technical reach: 2.6m HH 2) Terrestrial Technical reach: 1.8m HH 2) Connected Smart TVs (apps) Streaming devices (apps) Note: HH = households. 1) Dependent on license availability. 2) Astra Monitor report 2017 published 03/ ) No standard operations planned for the next years but started with first productions in UHD quality 28

29 Reach [A 14-69; in %] Viewing time [A 14-69; in min] Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 TV DVD/Blu-ray Free online video Pay VOD Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 TV DVD/Blu-ray Free online video Pay VOD Note: usage at least rarely, rolling last 4 quarters. Source: ViewTime Report 2018, SevenOne Media/forsa. 29

30 Technical implementation of TV usage via browser: live streaming and catch up H Technical implementation of TV usage via apps: live streaming and catch up H Integration of browser and app usage in AGF data: live streaming and catch up Q Technical implementation and integration of YouTube usage 1) Q ) Planned; licensing agreement between AGF and Google/YouTube outstanding. 30

31 Share of complete video usage [per day] 3% Millennials TV A = 61% [Minutes per day], A 14-35, by life stages TV conventional + alternative 7% 54% 81% Linear TV Non- TV TV A = 85% 100 TV conventional TV alternative DVD/Blu-ray Free Online Video PayVoD School University/ Work Apprenticeship Online Video Online Video free + paid free + paid 1) Source: Media Activity Guide, SevenOne Media/forsa, Q ) Source: TV conventional: AGF Videoforschung in Zusammenarbeit mit GfK; videoscope 1.1, , Marktstandard: TV Online video and TV alternative: Media Activity Guide, SevenOne Media/forsa, Q

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33 FOCUS: ENTERTAINMENT FEED DUAL CONSUMPTION FOCUS: OPTIMIZED MEDIA LIBRARY COMPREHENSIVE ALTERNATE ENTERTAINMENT OFFER I am waiting I am searching for something else Focus on short snackable content e.g. contextual information, news of the day, mini games or inspiration for later program enhancing entertainment offer Clear and inspiring content presentation Focus on finding and discovering most relevant long form entertainment content e.g. missed broadcast or personal recommendation 33

34 H [gross share] H [gross share] H [gross share] Basis: share of advertising in gross TV advertising market, Germany, Austria and Switzerland H Note: net share lead over competition slightly narrower. Source for Germany: Nielsen Media Research; source for Austria: internal estimate; P7S1 Group revenues include new subsidiary ATV; with the two channels ATV and ATV2 from April 2017 onwards; source for Switzerland: German-speaking Switzerland; Media Focus. 34

35 ROI EMOTIONS BRAND BUILDING 10% 6% 5% 4% 4% TV Magazine Billboard Newspaper Radio Internet Base: n=5,988; Source: Ipsos, Screen Life

36 1) Source: Search Uplift Study 2015, Google/AEGIS, DA Resolutions 2) Source: TV Response: new rules, new roles, 2015, Group M/Thinkbox, UK, 2005; based on 8 brands, Facebook metric is likes and comments 3) Source: SevenVentures; weighted average of 5 assets 36

37 The investments in TV advertising would build a foundation for the future Glenn Fogel, CEO When we run a heavy TV schedule, we see a lift in sales & product awareness. We need to run two weeks of digital to get the reach of one day of broadcast We targeted too much, and we went too narrow Marc Pritchard, Chief Marketing Officer Rich Lehrfeld, Senior Vice President of Global Brand Marketing & Communications Sources: Booking Holdings quote: AMEX quote: P&G quote: 37

38 [in EUR bn] Linear TV Digital Video Market of core segments 2022E Addressable TV/HbbTV Performance (D)OOH POS & Freesheets Total addressable market 2022E Market of core segments in 2022E Market of additional segments in 2022E Source: SOM Market Insights estimate based on Magna Global (Dec 2017), ZAW Yearbook 2017 and on commerce volume released by HDE/Federal Statistical Office of Germany 38

39 2018 Source: Warc International Ad Forecast (July 2018); ZenithOptimedia Advertising Expenditure Forecasts (June 2018); Magna Global (Broadcast TV, Update June 2018), pwc Broadcast TV German Entertainment and Media Outlook

40 Advertising effectiveness 1) [aided advertising recall, index 100 = without contact] TV 2.65x average long-term ROI Net CPT ranges 2) [in EUR] InStream Video InPage / Display Print TV Newspaper Magazines Online InStream Online Display 1) Eye Square 2012, basis: n = 200, years; 4 tested advertising campaigns per medium 2) A / MA Presse / AGOF / AGF in cooperation with GfK / own calculations 40

41 CAGR 7% CAGR 7% CAGR 3% 9 CAGR 4% ) Estimate based on AGF/GfK, Nielsen, ZAW, Media Dynamics, egta 2) Currency conversion based on

42 GERMAN MEDIA MIX TODAY [net, in %] FUTURE MEDIA MIX [net, in %] Others Print Digital TV E Note: Excluding POS budgets; Statements may vary due to rounding Source: Magna Global (Jun 2018), Digital including Google and Facebook 42

43 ADDRESSABLE TV Attracting new budgets [in EUR] Decentral Niche branding Note: 2016, based on Nielsen data and P7S1 own estimates 43

44 Partial HbbTV overlay ad on top of TV content in the event of a switch-in to one of our channels Partial HbbTV overlay ad on top of an existing linear TV commercial, e.g., with additional info as regional dealers Full overlay of an existing linear TV commercial, e.g., via HbbTV 1.5/2.0, or via partners on SmartTVs and Set Top Boxes 44

45 Bookable since 09/2017 Family with kids +58% uplift within target group HHNI above EUR 3, % uplift within target group Generation 50+ households +39% uplift within target group 45

46 HBBTV PENETRATION SmartTVs supporting HbbTV in Germany [in %] HbbTV 1.0 HbbTV 2.0 HbbTV 1.5 Total: 12m ProSiebenSat.1 is tech and innovation leader for Addressable TV We have successfully executed first live tests with Adressable TV Spots via HbbTV 1.5 in October 2017 Our technical approach allows us to reach ~ 55% of all HbbTV devices (including 2.0) Source: P7S1 internal estimates 46

47 Interest data, e.g., Perfume 47

48 Open industry standard netid for log-in services compliant with GDPR and potential future eprivacy regulation Convenient and transparent privacy management for users 1) Key enabler for future-ready data strategy Note: GDPR is General Data Protection Regulation. 1) First partner. 48

49 Note: Selection, Login-in alliance based on joint foundation subject to approval of anti-trust authorities and deal signing 49

50 Nordics UK Belgium Poland GSA Portugal France CEE Spain Note: GSA = Germany, Switzerland and Austria Italy Greece, SEE Turkey 50

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52 Content Production Distribution & Sales Talent Packaging O&O Channels & Platforms Generated and owned IP assets 52

53 Clients Networks & broadcasters 1) 1) Advertisers & brands LONG-FORM CONTENT SHORT-FORM CONTENT Comprehensive product offering DISTRIBUTION & IP INVEST TALENT PACKAGING MONETIZATION & ADVERTISING DATA & TECHNOLOGY Talents Writers Directors Actors Producers Influencers 53

54 16% of total revenues coming from OTT players 1) NO. OF PRODUCTIONS 2) NO. OF HOURS PRODUCED 3) NO. OF RETURNING SHOWS 4) RETURNING SHOWS RATE 5) TITLES IN THE CATALOGUE 6) INTERNATIONAL SALES CLIENTS 7) vs. 380 in Q vs. 1,460 in Q vs. 150 in Q vs. 60% in Q vs. 930 in Q vs. 340 in Q VIDEO DISTRIBUTOR RANKING 8) NO. OF WEB CHANNELS 9) MONTHLY VIDEO VIEWS 10) NO. OF YOUTUBE SUBSCRIBERS 11) MONTHLY ENGAGEMENTS 12) MONTHLY MIN WATCHED 13) in Q vs. 1,200 in Q vs. 7.1bn in Q vs. 750 in Q vs. 159m in Q vs. 31bn in Q ) Global production revenues from Amazon and Netflix, without Studio71 (Q LTM) 2) Incl. pilots, new and returning productions, multiple seasons counted as separate productions, Q without Studio71 (Q2 2018) 3) Q without Studio71 4) Returning shows with revenues booked in Q2 2018, Q without Studio71 (Q2 2018) 5) % returning shows as of revenues, Q without Studio71 (Q2 2018) 6) Cumulative 2010 to Q2 2018, thereof 965 RASI and 3,400 Gravitas titles, Q numbers without Gravitas 7) Thereof 455+ RASI and 140+ Gravitas clients, excl. Gravitas broadcaster clients, Q numbers without Gravitas 8) Source: Studio71, Top 10 video distributor in every market Studio71 operates in 9) Source: Studio71, excl. France (as of Q2 2018) 10) Source: Studio71, excl. France (as of Q2 2018) 11) Source: Studio71, excl. France (as of Q2 2018) 12) Source: Studio71, excl. France (as of Q2 2018) 13) Source: Studio71, excl. France (as of Q2 2018) 54

55 Amazon Prime Video s longest-running one-hour series Season 4 premiered in April % of customer reviews are 5-Star Season 5 filming starts end of July 2018 Married at First Sight: New Lifetime spin-offs with Honeymoon Island and Happily Ever After airing in fall 2018 A League Of Their Own European Road Trip: Premieres early 2019 on Sky One Say Yes To The Vegas Dress: In production now for TLC UK Left/Right to produce new lighthouse series The Weekly for FX/Hulu Weekly, half-hour series featuring big New York Times stories (minimum of 30 episodes) Hulu airing episodes the day after TV premiere 55

56 00 Monat/Month,

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58 STRONG AND DIVERSIFIED PORTFOLIO BALANCED GENRE MIX TOP DEVELOPMENT TEAMS ACROSS GENRES HIGH PERFORMING OTT CONTENT WORLDWIDE BROADCASTER RELATIONSHIPS DIRECT RELATIONSHIP WITH AUDIENCES SEAMLESS COLLABORATION ACROSS ALL BUSINESS LINES STRONG PARTNERSHIP WITH ALL SUBSIDIARIES EXCEPTIONAL REPUTATION WITH DIGITAL TALENT 58

59 TITLES IN THE CATALOGUE 1) INTERNATIONAL SALES CLIENTS 2) +3,300 Gravitas titles +140 Gravitas clients Q Q Q Q Q Q ) Cumulative 2010 to Q2 2018, thereof 965 RASI and 3,400 Gravitas titles; Q and Q numbers w/o Gravitas. 2) Thereof 455 RASI and 140 Gravitas clients, excl. Gravitas broadcaster clients; Q and Q numbers w/o Gravitas. 59

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61 # = market position Note: GSA = Germany, Switzerland & Austria 1) #1 in lead generation market for investment goods around the house; strategic minority investment 2) #1 in lead generation market for respective segments 3) Based on ecommerce revenues in Germany 4) In respective mass market segments 61

62 AVERAGE YEARLY REVENUE INCREASE OF 100% OVER PAST 4 YEARS External revenues 1) [in EUR m] DRIVEN BY CONSTANT IMPROVEMENT OF COHORT LOYALTY Net order intake value 2015 Q2 cohort (cumulated over time) 3) x1.6 x2.2 x ) Values for 2014/15 are pre acquisition. 2) FY ) Reading example: After 12 months, the net order intake of the Q cohort has reached 1.6 times its original level, after two years it has more than doubled, after three years, it has almost tripled. 62

63 GROWTH PLATFORM M4R/M4E 1) Test business model media Utilize idle TV inventory Benefit from TV media & marketing power in GSA 2) region fit MAJORITY INVESTMENTS Extract market insights Establish first additional revenue sources (commercial cooperations) M&A SCALE Drive consolidation in GSA 2) region Invest with bigger ticket sizes in GSA 2) region Form local market leader in Germany through cornerstone assets Setup operational excellence & data capabilities Seize European opportunity based on growth platform Accelerate M&A activity to capture window of opportunity for European consolidation in selective verticals Leverage partnership with General Atlantic Selected examples / / / ) M4R = Media for Revenue; M4E = Media for Equity 2) GSA = Germany, Switzerland & Austria 63

64 ACCELERATED M&A STRONG PRESENCE IN CORE NUCOM VERTICALS ADDITIONAL FINANCING LEADING GROWTH INVESTOR WITH ~EUR 17BN AUM 1) OPERATIONAL EXCELLENCE STRONG PORTFOLIO & NETWORK + WORLD-CLASS INDUSTRY EXPERTS INVESTMENTS IN >300 GROWTH COMPANIES ACCESS TO TALENT HIGH INTERNATIONAL REPUTATION SIMPLIFIED & FOCUSED STRUCTURE EXPERIENCE WITH CORPORATE PARTNERS 1) Assets under management 64

65 SIGNIFICANT MARKET SIZE, PROFIT POOL AND GROWTH POTENTIAL PROVEN ASSET- LIGHT BUSINESS MODEL WITH STRONG MARKETING LEVERAGE B2C FOCUSED BUSINESSES WITHIN OUR TARGET GROUP HIGH DEFENSIBILITY AGAINST FANGA AND LOW TECH DISRUPTION RISK STRONG MANAGEMENT & OPERATIONAL QUALITY 65

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68 [in EUR m] Q Q Δ H H Δ Revenues % 1,794 1,872-4% Adjusted EBITDA % % Reconciling items >+100% >+100% EBITDA % % Depreciation and amortization % % Thereof PPA % % Operating profit (EBIT) % % Financial result 6-26 n.m % Thereof interest result % % Result before income taxes (EBT) % % Consolidated net profit 1) % % Adjusted net income % % Net financial debt -2,199-2,425-9% -2,199-2,425-9% 1) After non-controlling interests. 68

69 External revenues and adjusted EBITDA [in EUR m] ENTERTAINMENT CONTENT PRODUCTION & GLOBAL SALES COMMERCE H H YoY H H YOY H H YoY Ext. revenues 1,252 1,258 0% Ext. revenues % Ext. revenues % Advertising 1,051 1,075-2% Production % Digital Services % Distribution % Global Sales % Physical products % Other % Other % Other 14 6 >100% Adj. EBITDA % Adj. EBITDA % Adj. EBITDA % 69

70 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 objectives of management and future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward-looking statements or other information stated herein, whether as a result of new information, future events or otherwise. 70