Thomas Ebeling Keynote

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| October 13, 2016 |

Capital Markets Day – October 13, 2016

Keynote

Thomas Ebeling

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| October 13, 2016 |

| October 13, 2016 | 2

Become a leading

international Omnichannel Entertainment & Commerce

Brand Powerhouse

Delight, inspire and

support consumers

with our Entertainment

and Commerce products

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| October 13, 2016 |

| October 13, 2016 | 3

Pushing digital commerce assets with TV maximizes the value of our idle ad inventory

and results in tangible TV synergies

Combining transactional commerce data and TV usage data enables

superior targeted advertising products

Entertainment Commerce

(4)

| October 13, 2016 |

| October 13, 2016 | 4

Expand channel and genre

portfolio Push new

innovative and targeted sales offerings

Build (Digital) Content

Ecosystem

Grow Digital Entertainment businesses internationally

Build Lifestyle Commerce

Ecosystem and leading verticals Broadcasting

Ad Sales Content

Production

Digital

Entertainment

Digital Ventures

& Commerce

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| October 13, 2016 |

| October 13, 2016 | 5

We will create value by …

Maximizing the value of our ad inventory

Driving and accelerating significant revenue synergies with our TV and commerce platforms and our acquired companies

A d S a le s

Optimizing the return of our content investments by using it on multiple platforms and channels

C on ten t

Reducing marketing and product development costs by exploiting the potential of our brands/products across different platforms

E nt e rtai nme nt & Co mme rc e

Increasing supply chain efficiency and economics by selling our products via multiple distribution channels and focusing on 3rd party supply

Using data efficiently across different platforms/businesses

Group

Increasing loyalty of our ad customers driven by our own commerce platforms by providing

data/consumer insights and sales potential for our customers

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| October 13, 2016 |

| October 13, 2016 | 6

1) 9M 2016; 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 2) H1 2016; Gross values; Source: Nielsen Media Research/SevenOne Media 3) maxdome cooperation with Deutsche Bahn is a closed circuit service

New and extended distribution deals Leading TV

advertising share (gross)

²⁾

Leading TV

audience share

¹⁾

Dynamic performance of acquired companies

Op er ati o n al excell e n ce Pr o d u ct & T ech d ev el o p men t

New Channel Apps New Addressable TV

and HbbTV offerings Expanded

AdTech business

New linearized online video platform

42.4%

27.8%

TV TV

VoD³⁾

New international content marketplace

+

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| October 13, 2016 |

| October 13, 2016 | Note: Band of Outsiders is a Minority Investment 7

K ey M & A d eals

Red Arrow expansion in US Games merger

with gamigo

Anchor assets in Health & Wellbeing Lifestyle Commerce

Ecosystem expansion New leading subscription-

based asset in Dating

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| October 13, 2016 |

We deliver attractive free cash flow and dividend yields …

P7S1 Group, 2016E

¹⁾

… and M&A is a key driver with strong FCF ROIs

P7S1 acquisitions

²⁾

8 1) Source: Bloomberg consensus estimates as of October 6, 2016 2) Note: FCF-ROI calculated as proportional FCF 2016 estimate (proportional to ownership

share) divided by invested cash to date based on active portfolio (incl. IC loans and capital increases), FCF as external FCF excluding internal TV media expenses, as per 2016 estimates (Red Arrow entities/ Smartstream FCF on entity basis). For majority acquisitions (active) closed until H1 2016, i.e. excluding Games (deconsolidated end of Q2 2016) and excluding recent acquisitions of Parship Elite Group, Windstar, Stylight, 44Blue. Excludes partially small Red Arrow transactions (e.g. Snowman, NERD) and internally transferred assets from EPIC to P7S1 (Valmano, Discavo)

~5%

P7S1 Group FCF yield

P7S1 Group Dividend yield

~6%

P7S1 M&A FCF ROI

>8%

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| October 13, 2016 |

| October 13, 2016 | 1) Including dividend for 2015, paid out in July 2016 9

Note: CAGRs calculated based on annual growth rates of continued operations at the time

Revenues (CAGR 2009 - H1 2016 LTM)

Recurring EBITDA (CAGR 2009 - H1 2016 LTM)

Recurring EBITDA margin (H1 2016 LTM)

Underlying net income (CAGR 2009 - H1 2016 LTM)

Dividends paid (cumulated 2009 - 2015)

¹⁾

Financial leverage (June 30, 2016)

+10%

+11%

+27%

+25%

EUR 2.7bn

2.1x

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| October 13, 2016 |

| October 13, 2016 | 10

Continued operations

Note: FCF ROI based on FCF corresponding to equity stake in portfolio company, i.e. after minority interest, and invested capital; dividends reinvested in security, December 28, 2012 to October 5, 2016

Source: PS71 dividend yield taken at AGM date pre ex-dividend. Stoxx 600 based on Bloomberg estimate data

Dividend yield

Our unique profile

2013

3%

4%

10%

5%

4%

12%

2014 2015

600 600 600

EPS growth

7%

4%

-3%

3%

10%

0%

5%

-5%

15%

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| October 13, 2016 |

| October 13, 2016 | 11

Financial Outlook How we push

new innovative and targeted ad sales offerings

I

Broadcasting

II

Content Production

III

Digital Entertainment

IV

Digital Ventures &

Commerce

V

VI

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| October 13, 2016 |

We maintain our leading position in the German market

12 Source: Nielsen, SevenOne Media

Share of advertising

Gross market, H1 2016 [in %]

Others

33.5%

Public

Broadcaster 4.6%

19.5%

42.4%

+8.9 ^%pts

lead vs.

key competitor

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| October 13, 2016 |

TV is by far the most used video medium in Germany …

13 1) Linear TV viewing on PC, laptop, tablet or smartphone via online stream, recording or broadcast signal

2) Free online videos incl. YouTube, Catch-up TV

Base: A 14-49; Source: AGF in cooperation with GfK/TV Scope/SevenOne Media, Viewtime Report SevenOne Media/forsa (2015)

Daily video usage A14-49

[2015, in minutes]

5 2 4

10 19 176

Cinema DVD & Blu-ray

Pay VoD Free online videos

²⁾

TV alternative

¹⁾

TV classic

86% ^{of daily}

video usage is linear TV

11% of daily video usage is non-linear online video

3% of daily video usage is

DVD, Blu-ray and Cinema

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| October 13, 2016 |

… and also remains the dominating reach medium in Germany …

Base: A14+ 14

Source: AGF in cooperation with GfK, TV scope, Nielsen, Viewtime Report SevenOne Media/forsa (Q1/2016), SevenOne Media estimates

Monthly net reach and usage

Usage (hours/month) Monthly net reach

140 130

120 110

100 90

80 70

60 50

40 30

20 10

0 TV Total

Private TV

100%

50%

0%

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| October 13, 2016 |

… mainly driven by the specific characteristics of the German market

15

Ad break intensity High intensity – no ad break regulations

(15-20 min/h) Low intensity – highly regulated

(max. 12 min/h) Channel

fragmentation

High fragmentation – premium TV package incl. >300 channels

Less fragmentation – strong lighthouse channels

Content quality in Free TV

High quality & top sport content not in basic TV service – Pay TV a ”Must Have”

>50 high/good quality channels in Free TV with top US & sport content

Language Dubbed version preferred English language preferred

Studio contracts Free TV with strong negotiation position Broad syndication model with supporting rights (incl. holdbacks)

Windowing Free TV widely protected vs. VoD Parallel windowing of top content

Distinct characteristics of the German TV market secure dominant position of Free TV compared to the US

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| October 13, 2016 |

Low penetration of alternatives supports linear TV in Germany

16 1) GER: VPRT Pay TV in Germany (2015); USA: SNL Kagan (2015); UK: ofcom international CMR 2015 (2014); Nordics: Digital TV research as cited by Statista, w/o FIN

2) GER: VPRT Pay TV in Germany (2015); USA: SNL Kagan (2015); UK: ofcom international CMR 2015 (2014); Nordics: (SWE only) ofcom international CMR 2015 (2014) 3) GER: AGF TV Scope (Q1 2015); USA: Nielsen (Q1 2016); UK: Thinkbox annual review 2015 (2015); Nordics: FIN Finnpanel Oy, TAM 2014 (2014); NOR TNS Gallup TV- meterpanel (2014) 4) GER: P7S1 analysis, 2015 EoY; USA: Nielsen (Q1 2016) UK: BARB UK Television Landscape Report Q4 2015 (2015) 5) TNS Google The Connected Consumer Survey (2016) 6) AKAMAI Q1 2016

Pay TV penetration ¹⁾ 20% 83% 59% 91-97%

Monthly spend per Pay TV

subscriber ²⁾ USD 28 USD 97 USD 47 USD 27

Share of time shifted

usage (vs. live TV) ³⁾ 2% 12% 13% 5-7%

SVoD penetration ⁴⁾ 11% 50% 24% 32-69%

Internet-enabled TV

usage ⁵⁾ 33% 36% 43% 30-46%

Daily online video usage ⁵⁾ 24% 36% 34% 28-31%

Low penetration of pay offerings and alternative video technologies strengthen the position of linear Free TV in Germany compared to other countries

Share of broadband

connections >15 Mbps ⁶⁾ 26% 35% 36% 37-50%

Alternative offerings

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| October 13, 2016 |

YouTube usage stagnates in Germany …

1) Source: Viewtime Report, SevenOne Media/forsa (2016) 17

2) Base: Total reach adults 14+ in Feb 2016; Source: Double Play; SevenOne Media calculation

Daily usage of YouTube stagnates … … and is driven by few heavy users

19

23

17

22 18 18

9 12

10 12

10 10

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

A 14-29 A 14-49

Daily YouTube usage

¹⁾

Germany [in min. per day]

Share of YouTube users by usage

²⁾

Germany [in %]

9%

of YouTube users …

91%

9%

33%

67%

… account for 67% of YouTube

usage

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| October 13, 2016 |

… and reach of Facebook in young target group is even shrinking

1) Wall Street Journal report “Facebook Overestimated Key Video Metric for Two Years” (22/09/2016) Note: Total user base = usage at least seldom

Source: Viewtime Report, SevenOne Media/forsa (2016)

Facebook total user base

77 77 77 74 78

70 61 54 62 59 63

56 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

A 14-29 A 14-49

Germany [in %]

Facebook seems to have overstated

average time spent watching videos for the

last two years by ¹⁾

60% ^to 80%

18

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| October 13, 2016 |

Thus, TV will continue to dominate video

19 1) Free online video incl. YouTube, PayVoD and Catch-up TV; Source: SevenOne Media estimate based on Viewtime Report, SevenOne Media/forsa (2016) 2) Linear TV viewing on PC, laptop, tablet or smartphone via online stream, recording or broadcast signal; Source: SevenOne Media estimate based on Viewtime Report, SevenOne Media/forsa (2016) 3) Source: AGF in cooperation with GfK/TV scope/SevenOne Media estimate

Base: All German-speaking TV households

Commercial target group (A 14-49) [Ø daily video viewing in minutes]

Young segment (A 14-29)

[Ø daily video viewing in minutes]

118 104

32 41 65

16

175 2015

201 2020E

Daily TV and video consumption

Non-linear online video (Free & Pay VoD)¹⁾ TV alternative²⁾ TV classic³⁾

176 162

29 45

2015

209 10 23

2020E

236 +1%

TV-related

+3%

TV-related

Online video usage is incremental to TV related consumption

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| October 13, 2016 |

Compared to UK and US, German TV has significant growth potential …

20 1) Overall media mix not 100% for UK due to roundings

Source: Magna Global forecast (June 2016), Digital including Google and Facebook Note: Excluding POS budgets

International advertising media mix comparison ¹⁾

13%

73%

2015

38%

35%

14%

9%

78%

2015

28%

50%

14%

TV Others Print Digital

[2015, media mix of net advertising market, in %]

23%

33%

34%

10%

56%

2015

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| October 13, 2016 |

… particularly from print advertising

1) Media usage 2016 (n = 3,003); based on adults 14+ years; Source: Media Activity Guide 2016, SevenOne Media/forsa 21 2) Source: Magna Global forecast (June, 2016)

… while TV advertising share ²⁾ still lagging behind TV usage share ¹⁾ clearly higher than print …

Print usage

TV usage TV advertising Print advertising

[share of usage, in %] [net share of advertising, in %]

%pts

∆

+41

%pts

∆

-11

47%

6%

23%

34%

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| October 13, 2016 |

TV is well positioned against digital weak points

22 Source: Integral Ad Science report on media quality (Q1/2016); ComScore UDM (2015)

Up to 10% of digital reach fraudulent due to robot traffic Ad Fraud

60% of digital video advertising not viewable Viewability

~15% of digital video advertising in environments with risks to brands Quality

Digital advertising not effective due to ad clutter Ad Clutter

~25% ad block usage in Germany Ad Blocker

Lasting impact of digital engagement doubtful

Engagement

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| October 13, 2016 |

Marktguru

Digital OOH Attractive packages for OOH customers Addressable TV

Data Targeting

Attractive packages for print-focused customers

Increasing share of advertising with new channels Addressable TV

Data Targeting New POS offerings (Marktguru, Shopkick)

Premium video ad business New initiatives Classical levers

Attractive packages for radio customers

P7S1 targets all large media budgets with strong offerings

23 1) Point of sale only; Source: SevenOne Media Market Insights estimate based on commerce volume released by HDE/Federal Statistical

Office of Germany 2) Total Out of Home, including DOOH and cinema 3) Print excluding freesheets Source: Magna Global (June 2016); ZAW Yearbook 2016

Note: Total market potential of EUR19bn for radio, digital, freesheets, OOH, print & TV

Freesheets Radio

TV Print

³⁾

Digital

Net market potential [in EUR bn]

4.4 4.8 1.1 1.8 6.4 0.8 7.6 26.9

POS

¹⁾

OOH

²⁾

Content Marketing

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| October 13, 2016 |

Our sales strategy aims to strengthen & expand our leading position …

24

Key market dynamics

TV with stronger position in Germany than in most other markets

Still comparably high print ad share in Germany

TV and digital remain complementary but with increasing convergence

Our strategic priority

 Defend and broaden our core TV business

 Gain advertising business from print with TV

 Exploit synergies between

TV and our digital business

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| October 13, 2016 |

… translating into five priority actions for SevenOne Media

25

Establish

Addressable TV

Attack

print

Create new advertising

products

Develop

Digital

Out of Home

business Expand data

targeting

proposition

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| October 13, 2016 |

German print advertising market 2015

EUR 1.4bn net print advertising spendings are addressable by TV …

26 1) Customers not directly addressable: Media, tobacco, classifieds, publishers, marketers

2) Magna/ZAW (net figures) and Nielsen (gross figures) with different coverage of print titles Note: Print = newspapers and magazines only (excl. professional magazines)

Source: Nielsen Media Research (2015), SevenOne Media estimates, Magna Global forecast (June 2016)

Accessible net market for TV Gross core TV

market potential [in EUR bn]

3.3 Gross regional potential

2.1 ∑ = 8.2

Magazines

4.7 3.5

2.8

1.4 Daily newspapers

Gross total

Not directly addressable

¹⁾

~30% of the EUR 4.8bn

net print

market ²⁾

accessible

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| October 13, 2016 |

… and we have identified key levers to attack national print

27

New channels to address specific niche print segments

Homogeneous small thematic ad breaks (beauty, luxury)

New print relevant TV formats (travel, beauty, health magazine) Push Stylight as fashion and home & living smartchannel Shift national reach campaigns to TV (reach, efficiency)

Develop HbbTV advertorial products (e.g. microsites)

New business sales force coverage (1,000 contacts/year)

(28)

| October 13, 2016 |

We leverage data from our broad portfolio for improved ad products

28

From context buying … … to audience buying

Advertisers used to target their audiences based on context of the ad …

… now, data-driven advertising enables

advertisers to target specific users (one-to-one), independent from specific context

We leverage data from our broad Digital Entertainment, Commerce and

TV portfolio to fully exploit opportunities arising from targeted advertising

(29)

| October 13, 2016 |

We have already implemented our first Addressable TV products

29

Implemented

Advertising overlay fading over running TV spot or

during program

Digital ads placed when switching to a P7S1 channel during running

program

Targeted user profile

based fullscreen overlay of linear TV advertising spots

Implemented In preparation

Overlay within spot Switch-In Spot Fullscreen Overlay

(30)

| October 13, 2016 |

Our improved HbbTV product enables new business opportunities

HbbTV driver for Addressable TV:

Hybrid proportion allows to profile user behavior and collect data

Additional monetization:

Games, integrated shops, cross selling via commerce assets and advertising ¹⁾

Enhanced consumer offering:

New info and entertainment service world around sports, news and stars

Improved product propositions

30 1) HbbTV technique enables playout of Addressable TV formats like Switch-Ins and Spot Fullscreen Overlay (mid-term)

Individualized welcome screen

Brand adapted look and feel

News &

entertainment Advertising

Sweepstakes

Shop

CONCEPT

Games

(31)

| October 13, 2016 |

We complement the customer journey to the POS with Digital Out of Home

31 POS = Point of Sale

TV spot Digital DOOH/POS

Intelligent cross-screen campaign bundles (direct & programmatic)

At Home Out of Home

(32)

| October 13, 2016 |

27.8 ^%

We have built a powerful unparalleled multichannel reach …

1) Base: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h

Source: SevenOne Media Research, AGOF/AGF, GFK, DMI, Market Research, Magna Global

9M 2016, A 14-49

¹⁾

TV market share

~320 ^m

contacts/month 240 ^m

contacts/month >160 ^m

contacts/month ~82 ^m

VV/month

~288 ^m

VV/month

Addressable TV Digital Out of Home

Social media &

influencer Mobile platforms Online platforms

32

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| October 13, 2016 |

… and now offer innovative 360° campaigns serving key advertiser needs

33

We build 360° campaigns from a portfolio of >60 ad products … … to serve advertiser needs

Awareness

Engagement

Conversion

TV platforms Digital platforms Social media & influencer

TV special ads Digital Out of Home Own social media & testimonials

3

^rd

party social media

Addressable TV Online & mobile platforms

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| October 13, 2016 |

Overall growth potential

Outlook: Solid growth potential for German net TV ad market

1) Freesheet potential for TV/mobile offers calculated on top of Magna market growth 34 Note: Estimate based on Magna Global (June 2016), SevenOne Media own estimate

Basic market growth/net price increase National print cannibalization

Addressable TV TV/mobile offers for freesheet market

New ad segments (e.g. POS) Shift to digital video

~290

~340

~125 - tbd

~45 ¹⁾

~50 -350 Growth

Media mix

Net market growth potential 2020 vs. 2015 [in EUR m]

Additional upside for digital advertising

through HbbTV product Market drivers

∑ ~500 (CAGR 2-3%)

P7S1 profits from online video advertising growth

2 3 4 5 1

6 ^- 350

~125 - tbd

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| October 13, 2016 |

| October 13, 2016 | 35

Financial Outlook Ad Sales

I

How we expand our channel and genre portfolio in broadcasting

II

Content Production

III

Digital Entertainment

IV

Digital Ventures

& Commerce

V

VI

(36)

| October 13, 2016 |

Audience share

We maintain our leading position in the German TV market

Base: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; RTL Mediengruppe since June 2016 incl. RTLplus; w/o RTL II 36 minority; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland

[9M 2016, in %]

%pts

∆

+3.5

24.3

27.8

(37)

| October 13, 2016 |

Our TV strategy aims to strengthen & expand our leading position …

37

Key market dynamics

TV with stronger position in Germany than in most other markets

Increasing fragmentation of TV

landscape through thematic channels Millennials using TV content in new ways and on new devices

Our strategic priority

 Defend and expand our leading TV position

 Increase grid ownership by leveraging Red Arrow

 Introduce new offerings

for Millennials

(38)

| October 13, 2016 |

… and translates into five priority actions for Broadcasting

38

Launch new thematic

magazines, windows and

channels Leverage Red Arrow

synergies Strengthen

core channels

Build reach with new distribution

platforms

Develop new consumer

offerings

(39)

| October 13, 2016 |

We continue to strengthen our core channels …

39

Core channels

Focused channels

New channels

A

Investment priority

C B

Channels

Further new thematic channels

under evaluation

(40)

| October 13, 2016 |

… and broaden our channel portfolio with new channels

40 1) Since launch 22 September 2016 (not included in audience share total)

Base: 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

A 14-59 A 14-39 A 14-49 F 14-39 F 40-64 M 14-39 M 40-64

∑ 27.8%

YOUNG MALE

FEMALE OLD

Further thematic channel, window and magazine concepts under evaluation

Launch in Q3 2016

Market shares 9M 2016 Key target groups

8.6%

10.3%

5.1%

1.4%

1.0%

0.2% New

Our channel portfolio in Germany

1)

(41)

| October 13, 2016 |

Increasing share of own productions Launched YTD 2016 ¹⁾

We increase the share of Red Arrow productions for our channels

41 1) Base: All German TV households (German-speaking), A 14-49 years, Mon-Sun, full day 3-3h

Red Arrow share of BC GS’s commissioned content [as % of commissioned spendings]

H1 2015 LTM 8%

H1 2016 LTM 10%

2018E

>20%

Target

“Ran an den Mann”

“Kiss Bang Love”

“So tickt der Mensch”

“The Taste”

Pipeline 2016/2017

New

New season Up to

11.2%

Up to

14.1%

Joint format development process with

BC GS

(42)

| October 13, 2016 |

We secure broad multichannel distribution of our TV brands

1) Smart TV installed base: Estimate for end of year 2016; referring to 7TV and/or ProSiebenSat.1 Channel Apps 42 2) MAU as of September 2016; gross values, not corrected for double usage of multiple services

German TV households reached with our Top 3 channels via DTH, Cable, IPTV and DVB-T

Smart TVs with Top shelf positioning of P7S1 TV Apps ¹⁾

Monthly active users on web, mobile and Smart TV platforms ²⁾ Distribution partners across

all platforms and devices

DTH, Cable, IPTV, DVB-T, web, mobile, …

Mobile downloads of new TV Channel Apps in

first month after launch

Coverage of mobile platforms (iOS and Android) with

our TV Channel Apps

8m

>32m

>30

partners

>90%

>99%

>0.8m

(43)

| October 13, 2016 |

We launched seven new TV Apps on mobile and Smart TVs

1) MAU on all TV channel and smart TV apps in first month since launch (28.08.-28.09); gross values, not corrected for double usage of multiple 43 apps 2) Video Views (full+short+live) on all TV channel and smart TV apps in first month since launch (August 28, 2016 – September 28, 2016)

Launched in August 2016

(on iOS, Android and Samsung Smart TVs) Free 24/7 live stream

Free 7 day catch-up

Online exclusive bonus & newsroom content

Strengthen TV brands & increase reach

Second screen features for TV program ping-pong

First month after launch

800 ^k

total mobile downloads

2.2m

Ø

monthly active users

¹⁾

4.9 ^m

total video views

²⁾

Enable vertical thematic channels within apps and converge with commerce offerings

(also for P7S1 assets)

(44)

| October 13, 2016 |

Outlook: TV will continue to dominate video viewing

44 1) Source: AGF in cooperation with GfK/TV scope/SevenOne Media estimate 2) Linear TV viewing on PC, laptop, tablet or smartphone via

online stream, recording or broadcast signal; Source: SevenOne Media estimate based on Viewtime Report, SevenOne Media/forsa (2016);

Base: All German speaking TV households 3) Free online video incl. YouTube, PayVoD and Catch-up TV; Source: SevenOne Media estimate based on Viewtime Report, SevenOne Media/forsa (2016)

Video viewing 2015

A 14-49

10 23 176

TV Classic ¹⁾

Non-linear Online Video ³⁾ TV

Alternative ²⁾

Video viewing 2020E

We expect to maintain a leading position in the TV market

A 14-49

93% 46% 57%

View ing tim e [in m inu te s p e r d a y ] Mont hly Reach

29 45 162

TV Classic ¹⁾

Non-linear Online Video ³⁾ TV

Alternative ²⁾

View ing tim e [in m inu te s p e r d a y ] M ont hly Reach

(45)

| October 13, 2016 |

| October 13, 2016 | 45

Financial Outlook Ad Sales

I

Broadcasting

II

How we build a (Digital) Content Ecosystem

III

Digital Entertainment

IV

Digital Ventures

& Commerce

V

VI

(46)

| October 13, 2016 |

We have extended our US production footprint since last CMD …

1) Minority investment 46

2) Share of H1 2016 LTM external revenues generated by US production entities

High-quality US investments

US

accounts for

72%

of CP&GS revenues ²⁾

New New

New

¹⁾

New

(47)

| October 13, 2016 |

… and build our production strategy upon key market dynamics

Key market dynamics Increasing number of digital video platforms

US continues to be the

largest TV production market Market consolidation is leading to more studio attention on

non-scripted shows

Our strategic priority

 Increase Red Arrow share of P7S1 commissioned content

 Build Digital Content Ecosystem

 Further expand English scripted catalogue and valuable

non-scripted IP library

47

(48)

| October 13, 2016 |

Our five priority actions for Content Production

48

Create and own

blockbuster formats

Leverage synergies

with TV channels

Build Digital Content Ecosystem Expand

digital production

capabilities Expand

US portfolio of production

companies

(49)

| October 13, 2016 |

| October 13, 2016 | 49

Our vision is to build an integrated TV and Digital Content Ecosystem

CONTENT PRODUCTION

THEMATIC PACKAGING

MONETIZATION/

CUSTOMERS

Webstar content

Thematic TV channels/windows

Media Exchange

Consumers (ads & subscriptions)

P7S1 and Media Alliance

TV platforms and broadcasters

Publishers

Ramp-up digital content production (low cost, high volume) Monetize globally and feed our Entertainment Ecosystem

Health &

wellbeing Food Lifestyle &

fashion

Professional TV content

Digital content

Thematically focused content

Health &

fashion

Beauty Outdoor Bridal

MULTICHANNEL CONTENT DISTRIBUTION

P7S1 thematic digital platforms

Thematic TV formats

Health &

fashion

(50)

| October 13, 2016 |

Outlook: We continue to increase our catalogue and production volume

50 1) Cumulative 2010 to 2016 2) Incl. pilots, new and returning productions, multiple seasons counted as separate productions

3) As % of commissioned spendings BC GS = Broadcasting German-Speaking

Shows in catalogue ¹⁾

2018E

>1,000

H1 2016

>870

Number of productions ²⁾ Red Arrow share of BC GS

commissioned content ³⁾

2018E

>450

H1 2016

>330

10%

2018E

>20%

H1 2016 LTM Number of hours produced

2018E H1 2016

>1,200

>1,700

(51)

| October 13, 2016 |

| October 13, 2016 | 51

Financial Outlook Ad Sales

I

Broadcasting

II

Content Production

III

How we grow our Digital Entertainment businesses internationally

IV

Digital Ventures

& Commerce

V

VI

(52)

| October 13, 2016 |

We strengthen Digital Entertainment locally and internationally

52

Key market dynamics

Video entertainment is becoming a global market

US remains the biggest single market

Programmatic advertising and video are main growth drivers of digital advertising market

Our strategic priority

 Strengthen German- speaking video

advertising business

 Scale our Digital Entertainment assets internationally (with

AdTech as key priority asset) and

build an integrated digital video

ecosystem

(53)

| October 13, 2016 |

Our Digital Entertainment growth strategy at a glance

53

Create value through attractive minority

investments Strengthen current

portfolio assets

Build international ecosystem together with

(broadcasting) partners

Additionally, leverage synergies with Broadcasting, Red Arrow, TV sales, own commerce vertical assets and Media Alliance

Content Production

Multichannel Distribution

Partnerships

(54)

| October 13, 2016 |

Our five priority actions for Digital Entertainment

54

Grow international

scale of

Studio71

Expand local digital

ad sales portfolio

Expand international footprint with

invest in

Pluto.tv

Build international

scale in

AdTech

Establish key local partnerships for

maxdome

(55)

| October 13, 2016 |

We continuously expand our innovative digital ad sales portfolio

55 1) H1 2016 vs. H1 2015 2) DOOH = Digital Out of Home 3) P7S1 estimation 4) All Switch-In campaigns (incl. Switch-In XXL) Jan-Aug 2016

Instream, display &

content marketing Programmatic 7Screen Addressable TV

Double digit

revenue growth

¹⁾

+54%

video views growth

¹⁾

Top 3

market position

³⁾

>40

campaigns realized

⁴⁾

360°

New New

Grow targeted video display ads, and branded entertainment

concepts in premium environment

Established premium programmatic private

marketplace in Germany

Launched ad special sales unit “7Screen”

to secure stake in fast growing DOOH ²⁾ market

Pushed HbbTV top product “Switch-In”

for Addressable TV

(56)

| October 13, 2016 |

Our end-to-end AdTech solution ensures control of the full value chain

56

Budget AdTech Media & Data

Demand Side Platform

Supply Side Platform

Ad server

Agency

Neutral &

transparent technology Top-notch local

service Designed for premium

customers Access to exclusive media

EU data protection compliant

(57)

| October 13, 2016 |

Studio71 continues its international track to expansion

1) Based on global video views of Studio71 in H1 2016 2) New creators signed with more than 250k subscribers 3) Top 10 TVoD movies with Natural 57 Born Pranksters being top 10 movie in 18 countries 4) In 2016 5) Based on branded entertainment/integrations revenue H1 2016 vs. H1 2015

Signed more top creators Realized bigger productions

Excelled at ping-pong with TV

Built best-practice branded entertainment business

27bn

video views in H1 2016

¹⁾

38

campaigns realized⁴⁾

>35%

revenue growth⁵⁾

Top 10

movies³⁾

>100

new top creators²⁾

(58)

| October 13, 2016 |

We launched the new linearized online video platform Quazer …

1) KPIs based on September 2016 58 2) Monthly active user

First results from consumer testing

¹⁾

:

45 min

avg. viewing time/MAU

²⁾

430k

live test user

Transforms content to linear streams for individual and niche audiences

First product version on Web, App Store, Play Store and on Apple TV4

>60 factual channels live and promising take up of users with focus on 29-49 yrs

Advertising funded business

model with targeted short

instream ad breaks

(59)

| October 13, 2016 |

… and now merge Quazer into US OTT service Pluto.tv

59

Free, linearized, lean-back video streaming

~14%

P7S1 stake in combined

business

Scripps

co-investor

We have acquired a strategic

minority stake in U.S. based Pluto TV and merged it with our German linear VoD platform Quazer

Pluto.tv is a new generation of

linearized, lean-back video streaming and best positioned in U.S. linear VoD market

Together with other strategic investors, we plan to further grow Pluto.tv and Quazer and distribute relevant P7S1 content

+5 m

Pluto TV

active users

(60)

| October 13, 2016 |

We have secured key local distribution partnerships for maxdome

1) Combining total potential household reach of unitymedia, telecolumbus 2) Note: 50 titles for free, 1,000 titles in SVoD train package, TVoD titles to be 60 selected, access via Deutsche Bahn Wifi on train 3) Source: Deutsche Bahn 4) Source: Freenet Group Reporting

Deep product integration with

leading cable operators in Germany

First mover for in-train entertainment in Germany providing maxdome service ²⁾ to ICE train passengers of Deutsche Bahn

Tariff bundling with leading mobile reseller in Germany

10m

potential households

¹⁾

80m

passengers per year

³⁾

9m

mobile

customers

⁴⁾

(61)

| October 13, 2016 |

Outlook: How we will improve our margins for Studio71 and maxdome

61

Continue to internationalize business (e.g. through partnerships)

4 Broaden revenue streams by widening content distribution

1 Grow premium content ownership and internationalize own brands

3 Key profitability measures for Studio71 global

Further expand branded entertainment sales

2 Key profitability measures for maxdome

Profitable in

Q4 2017

and

FY 2018

Push new, unique customer

proposition as curator and content guide

1 Utilize B2B best-in-class distribution deals

2 Invest in own IP through strong synergies with RedArrow and TV

4 Further exploit potential of concept sales

3 Profitable in

Q4 2017

and

FY 2018

(62)

| October 13, 2016 |

| October 13, 2016 | 62

Financial Outlook Ad Sales

I

Broadcasting

II

Content Production

III

Digital Entertainment

IV

How we build a Lifestyle

Commerce

Ecosystem and leading verticals in Commerce

V

VI

(63)

| October 13, 2016 |

We have set up a unique combination of TV and Commerce elements

63

Reach/awareness Engagement/interest Conversion/action

Lead Gen platforms

Engagement platforms

E-commerce platforms

Retail

Through our TV and online channels we generate

massive reach

On our online Lead Gen and Engagement platforms we can convince the consumer to buy a product

Products are sold on our e-commerce platforms and through retail partners Product

(physical &

non-physical)

TV & Online

We push both

our own products

and our customers

products

(64)

| October 13, 2016 |

We structure our Commerce portfolio in verticals …

64

Online Price Comparison

Online Dating Online

Travel

… and an ecosystem in Lifestyle Commerce We build vertical market leaders …

Health, Wellbeing

& OTC Fashion Beauty &

Accessories

Food &

Functional Nutrition

TV channels, advertising, infomercials

Engagement platforms (7NXT)

Physical goods (Windstar, Teatox) Lead Generation (Stylight) Commerce platforms (Flaconi, Vitafy)

P ro d u c ts P la tf o rm s TV

(65)

| October 13, 2016 |

Criteria fit High Medium Low

… which we have selected based on clear investment criteria

65

Selection criteria for verticals Online

Travel

Online Price Comparison

Online Dating

Lifestyle Commerce Structural growth market

Attractive rev. and EBITDA margin potential

Protected from tech disruption Entry barriers for global giants Highly TV responsive

Asset-light business model potential Digital transformation potential

Omnichannel sales potential Data synergies

Sales Platforms for products of our customers

Additional ad sales potential Attractive

market financials Robust

business model

Strong

TV synergies

Non-TV synergies

Manageable risk

exposure

(66)

| October 13, 2016 |

We continue our Ventures & Commerce growth strategy …

66

Key market dynamics Convergence of TV and Commerce

E-commerce market growing double-digit globally

Local digital niche markets growing, e.g. for health

Our strategic priority

 Leverage our unique combination of TV and Commerce capabilities

 Expand existing and build new commerce verticals

 Pursue bolt-on M&A of profitable

assets

(67)

| October 13, 2016 |

… by focusing on five priority actions for Digital Ventures & Commerce

67

Expand Online Price

Comparison market

share Extend

Dating market leadership Grow

Travel into European

leader

Build Lifestyle Commerce

Ecosystem

Continue

“String of Pearls”

M&A strategy

(68)

| October 13, 2016 |

Etraveli’s growth in Travel is driven by internationalization

68

Embrace strong Meta development with superior consumer offering

Continue profitable

international expansion

Further improve data driven and operational excellence

1.

2.

3. Growth strategies

active in countries

46

(69)

| October 13, 2016 |

Verticals

We launch new verticals on our core online comparison portal Verivox

69

Portfolio synergies that we leverage

Energy TelCo Insurance

Financial

Services OTA Car Rental New

We integrate existing portfolio products into Verivox to push existing and build new verticals Depending on success, we focus on either one brand or a dual brand strategy

Dual

brand

strategy

(70)

| October 13, 2016 |

We acquired Parship as the cornerstone for Dating

70 1) % EBITDA of revenue, Parship Elite Group 2016 figure; Mötesplatsen 2014 figure; Match.com (segment, not Group) 2015 figure;

Source: Company information 2) Ent. rec. EBITDA margin potential 3) German-speaking countries penetration 4) Matchmaking users among US adult single internet users; Source: Consumer Survey

Purely digital, subscription-based and asset-light business model

High renewal rate indicates high customer satisfaction

High synergy potential with P7S1

38%

21% 27%

25%

14%

High upside potential for penetration

Margin potential of

25-30% ²⁾

Market with exceptional margins ¹⁾

Paid Online Matchmaking⁴⁾ Parship Elite

Group subscriber penetration³⁾

#1 Online dating service in German-

speaking countries focused on

attractive matchmaking segment

(71)

| October 13, 2016 |

We will scale Stylight through new segments and internationalization

71

… Potential new verticals

Existing verticals

Expand through internationalization Expand through building new verticals

Launched in 15 countries already

Next to come: Ireland

Fashion is core vertical, Home & Living launched in H1 2016

Next to come: Beauty

New markets & verticals can be entered at low cost through

central operations and strong tech platform

(72)

| October 13, 2016 |

Where we stand with our Lifestyle Commerce Ecosystem …

72 1) Minority shareholdings

Fashion Health,

Wellbeing & OTC Beauty &

Accessories

Food & Functional nutrition Lifestyle Commerce verticals

7NXT

TV reach

Lead Gen platforms

Engagement platforms Omnichannel sales approach

Physical goods

TVPlatformsProducts

1)

7NXT

1)

Selected examples of TV formats

Lifestyle Commerce

Ecosystem

(73)

| October 13, 2016 |

… and how everything works together in the ecosystem

CLV = Customer Lifetime Value

A full-fledged product and service portfolio locks the user in our ecosystem and maximizes CLV

… based on our physical products

Engagement platform

Digital Sales platform

Physical product Lead Gen

… our 7NXT engagement

platforms …

… which include nutrition

recommendations ...

… Stylight health and beauty content leads

users to …

TV

TV formats and ads create awareness …

73

(74)

| October 13, 2016 |

Lifestyle verticals we focus on

74

Ecosystem levers

TV fit

Synergies with TV content Difficult to disrupt

Intervertical synergies

Omnichannel sales potential High margin products

Strong defensive, non-cyclical properties

Fashion Beauty &

Accessories

Health, Wellbeing & OTC

Food & Functional nutrition

Strategic benefit for ad sales clients

(e.g. data, sales platforms)

(75)

| October 13, 2016 |

We create value in Commerce through accretive deals and TV synergies

75 1) Excludes internally transferred assets from EPIC to P7S1 (Valmano, Discavo). Excludes transactions closed in 2016

2) Entry LTM figures partly based on local GAAP and management reports. LTM entry EBITDAs include air-time cost. For companies without monthly reporting prior to closing, figures based on full year of acquisition year; 2016E EBITDAs exclude airtime cost; EBITDA partly entity based

Revenue growth of assets since acquisition ²⁾

Ext. rec. EBITDA increase of assets since acquisition ²⁾

H1 2016 LTM LTM at entry

~1.8x

[in EUR m]

H1 2016 LTM LTM at entry

~2.2x Active majority portfolio ¹⁾

[in EUR m]

Online Price Comparison

Lifestyle Commerce

Online Travel

(76)

| October 13, 2016 |

[in EUR m]

863

108 New DV&C CMD Target 2018

1,172

H1 2016 LTM pro forma 2012

Outlook: We expect to continue our strong growth in Commerce

1) incl. recent acquisitions, e.g. Parship Elite Group 76 Note: Based on new segment structure; 2012 as reported

Digital Ventures & Commerce CMD target (ext. revenues)

CAGR +13%

Vast majority of our future growth will be organic

Rec. EBITDA margin target range

of 20–25%

1)

(77)

| October 13, 2016 |

| October 13, 2016 | 77

How these strategies translate into our financial targets Ad Sales

I

Broadcasting

II

Content Production

III

Digital Entertainment

IV

Digital Ventures

& Commerce

V

VI

(78)

| October 13, 2016 |

We confirm our financial policy and acquisition strategy

78 1) Net debt/LTM recurring EBITDA (respective year-end) 2) Based on underlying net income

Financial leverage target range ¹⁾

Dividend pay-out ratio ²⁾

Acquisition strategy

1.5-2.5x 80-90%

Bolt-on and media

investments

(79)

| October 13, 2016 |

We will continue our value creation focused M&A approach

79