Capital Markets Day New Distribution Strategy Conrad Albert, October 5, 2011
2001-2011: Significant changes in landscape DISTRIBUTION One-device landscape: Non-mobile TV 2001 2011 Multi-device landscape: TV, tablet, PC, mobile consumption One type of consumption 1) : Linear free TV Various types of consumption: Linear free TV, Pay TV, catch-up, ad VoD, transaction-based VoD, subscription-based VoD, different types of viewer experiences (SD vs. HD) Three types of signal distribution: Analogue terrestrial, Satellite, Cable Five types of signal distribution: Digital terrestrial, Satellite, Cable, IPTV, Mobile No business model for Free TV broadcasters in Germany: Being a bottom line net payer for signal distribution New distribution business models for Free TV broadcasters in Germany: Generating a positive EBITDA contribution via CPS and copyright fees 1) Except Premiere Pay TV platform (Sky) Page 2
2001: Significant commercial unbalance Revenues via Feed in Fees No Revenues Page 3
2011: A more fair balance of trade Revenues via Feed in Fees HD TVoD etc. Revenues via HD VoD Trademark Fees Cooperation Fees Channel supply payments etc. Page 4
Tapping new revenue sources with a mutual-benefit approach P7S1 2001: Platform s B2C revenue base without any shared business for Broadcasters 2011: New products (HD, VoD) trigger additional customer spending, in which Broadcasters can participate together with Platforms Page 5
ProSiebenSat.1 market leader in launching HD HD January 2010 April 2010 December 2010 August 2011 November 2011e July 2010 January 2011 September 2011 October 2011 Page 6
HD penetration will reach 30% of all TV households in Germany by 2015 Shut-down of analogue satellite in 2012 50% 31% 29% 27% 26% Analogue 43% 57% 53% 50% 45% SD 8% 13% 18% 23% 29% HD 1) 2011e 2012e 2013e 2014e 2015e Page 7 1) Including KDG, Unity, KBW, Telecolumbus, Primacom, HD+, Sky and DTAG Source: Own assumptions
HD penetration more than triples by 2015 Assessment of HD technical reach by platform over the years IPTV 7% IPTV 14% 24% Cable 62% Satellite 33% Cable 59% Satellite 2.9m households in 2011e 10.8m households in 2015e Source: Own assumptions Page 8
Examples for current retail HD (stand-alone or bundled) HD stand alone retail-price between 3 to 5 per month, most volume expected via bundles Page 9
Improving Group EBITDA by more than EUR 50 m in 2015 EBITDA impact Germany (EUR m) 30 20 HD HD/SD (net positive) 10 0-10 -20 SD ~ 50 m -30-40 2010 2011e 1) 2012e 2013e 2014e 2015e Old deal terms New deal terms Source: P7S1 own estimate Page 10
ProSiebenSat.1's new distribution formula Attractive, leading and broad-ranged content portfolio Being open to technical innovation and user-friendly applications, i.e. our content shall be available anywhere and anytime Smart cooperation models between broadcaster and plattform Improving Group EBITDA by more than EUR 50m in 2015 Page 11
Disclaimer This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1 AG"), its subsidiaries/affiliates and/or ProSiebenSat.1 Group as a whole (all hereinafter collectively referred to as P7S1 Group ), including opinions, estimates and projections regarding P7S1 Group's financial position, business strategy, plans and objectives of management and future operations and including opinions, estimates and projections regarding the markets in which it presently operates or in which it expects to operate in the future. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of P7S1 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, express or implied, is made by ProSiebenSat.1, its subsidiaries/affiliates or P7S1 Group as a whole 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 P7S1 Group. ProSiebenSat.1 and its subsidiaries/affiliates undertake 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. Page 12