Growing to the next level

October 15, 2015

Growing to the next level

Capital Markets Day 2015

Broadcasting German-speaking

| Page 2

| October 15, 2015 |

October 15, 2015

Growing to the next level

Capital Markets Day 2015

Thomas Ebeling

TV Operations

Market dynamics Performance

review &

achievements

1

Strategic outlook

3

TV operations

2

Summary

4

1

| Page 4

| October 15, 2015 | | Page 4

| October 15, 2015 |

Key achievements since last year’s Capital Markets Day

Note: all audience shares target group A14-49, 9M 2015 | Page 4

Expanded lead

Increased ratings Secured top content

Grew small channels

Strengthened female Leveraged digital

>29%

∑+1.0%pts

Δ 5.0%pts

Audience share (A14-49)

[9M, in %]

Best 9 months ratings performance in the last ten years …

28.3 27.9 27.9

28.6 28.6 28.6

27.7 27.6

28.4

29.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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| October 15, 2015 |

… with a strong position in the German TV market …

1) Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun, full day 3-3h; RTL Mediengruppe w/o RTL II minority; Source: AGF in cooperation with GfK/TV Scope/P7S1 TV Deutschland 2) Gross values; Source: Nielsen/SevenOne Media, Sales Steering & Market Insights

| Page 6

Audience share

29.5

24.5

[9M 2015, in %]

33.3 44.5

[9M 2015, in %]

%pts

Share of advertising

%pts

∆

+11.2

∆

+5.0

… and growing lead over key competitor

Audience share Audience share Delta.

29.5 27.6

28.4

2013 2014 2015

24.5 26.4

24.6

2013 2014 2015

+1.9%pts

-1.9%pts

Δ 1.2

Δ 3.8

2013 2014 2015

Δ 5.0%pts

[9M, in %] [9M, in %]

[9M, in %]

vs.

| Page 8

| October 15, 2015 | | Page 8

| October 15, 2015 |

Outstanding performance driven by top content …

Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun, full day 3-3h Source: AGF in cooperation with GfK/TV Scope/P7S1 TV Deutschland

Mega Blockbuster

e.g. Hänsel & Gretel: Hexenjäger (Mar. 1, 2015)

Entertainment

e.g. Schlag den Raab (Sep. 12, 2015)

Reality

e.g. Promi Big Brother (Aug. 27, 2015)

German fiction

e.g. Einstein (Mar. 24, 2015)

Factual

e.g. Galileo Big Pictures (May 9, 2015)

Event series

e.g. The 100 (Jul. 22, 2015)

9M 2015 up to

24.4%

9M 2015 up to

22.5%

9M 2015 up to

22.5%

9M 2015 up to

22.8%

9M 2015 up to

13.8%

9M 2015 up to

17.7%

…and increasing female audience share

30.4 28.5

2014 2015

[9M, in %]

Female 14-49 yrs

+1.9%pts

[9M, in %]

Female 14-29 yrs

34.1 32.7

2014 2015

+1.4%pts

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| October 15, 2015 |

Successfully leveraging digital synergies to drive viewer loyalty

1) 7TV app launched in May 2014; 7TV website and complementary SmartTV application launched in May 2015 Source: IVW, Webtrack, facebook.com, twitter.com, instagram.com, P7S1 TV Deutschland

Successful digital TV offerings #1 TV company in German social media

.de .de

.de .de

[H1 2015 vs. H1 2014

]

• ~25 million fans overall

• ProSieben = #1 TV fan page in Germany

• ~500k followers overall

• “Topmodel” = #1 TV format in Germany

• ~3 million followers overall

• ProSieben = #1 media channel in Germany

+43%

Unique visits

+23%

Page impressions

+58%

Video views

| October 15, 2015 | | Page 10

Market dynamics Performance

review &

achievements

1

Strategic outlook

3

TV operations

2

Summary

4

1

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| October 15, 2015 |

TV will remain the lead medium with attractive online offerings and differentiated content as key success factors

Linear TV market

• Continuing channel fragmentation with potential for specialized niche concepts

• Relevant Set variations

• Top formats & lighthouses essential for larger channels

Content supply

• Growing content supply due to extended provider landscape…

− US majors & indies („traditional“)

− International (co-)productions

− Digital (e.g. MCNs)

• …but also increasing competition for top content

TV/video consumption

• TV to remain the lead medium/

central fire place…

• …supported by second screen

& social media

• Non-TV related consumption growing, but mainly on-top

• Relatively small PayVoD share

Online video market

• New platforms/technologies drive customer experience and offer additional ways of content exploitation…

• …driving reach of TV related content

P7S1

Daily TV and video consumption

[Ø daily video viewing in minutes]

TV related consumption with increasing potential until 2020 …

• Online video usage is incremental to TV related consumption

• We have already captured the online eyeballs with our strong Digital Entertainment portfolio and are well prepared for potential changes in video consumption

177 171

50 31 38

217 9

2015E 2020E

259

117 98

60 29 33

2020E

187

2015E

162 12

Ad target group (A 14-49) Young segment (A 14-29)

+12%

TV related

-2%

TV related

[Ø daily video viewing in minutes]

Classic linear TV Online TV related

(streaming & catch-up)

Online non-TV related

(including PayVoD)

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| October 15, 2015 |

TV panel upgrade to adequately reflect video consumption

Note: SevenOne Media estimates based on current planning

More TV usage situations

Live streaming

Panel extension

Complete coverage of 2nd, 3rd, … TV sets

Upgrade of single household measurement

In web browser

In mobile & Smart TV apps (e.g. 7TV, Magine, Zattoo)

Inclusion of German-speaking non-EU foreigners (e.g. Turkish population)

Planned TV panel adaptions

2015 

2015 

Q1 2016

H2 2016 01/2016

Measured reach in young segment (A 14-29) +10%

Measured reach in key

target group (A 14-49)

+5%

Importance of TV supported by 2nd screen & social media

of daily video consumption is TV-related (A 14-49)

say TV will increase or maintain importance adjust their living room furniture towards the TV set

higher daily TV consump- tion of “multi-screeners” ¹⁾

recommend ProSieben due to social media activities ²⁾

of social media users watched an herein advertised TV format

86%

86%

94%

Importance of TV 2

screen & social media impact

50%

61%

38%

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| October 15, 2015 |

Non-TV related online offerings with low additional reach …

Basis: Adults 14-49/14-29, May 2015; Ø usage of at least 1 minute per day

Source: AGF in cooperation with GfK/TV Scope; Double Play data set; SevenOne Media calculations

TV & YouTube reach – A 14-29 TV & YouTube reach – A 14-49

[Ø monthly reach in m]

11.5

A 14-29

&

A 14-29

[Ø monthly reach in m]

31.2

A 14-49

&

A 14-49

∆

Additional reach through YouTube Linear TV reach

Additional reach through YouTube Linear TV reach

∆

… and PayVoD consumption expected to remain minor

PayVoD consumption – A 14-29 PayVoD consumption – A 14-49

[Ø daily video viewing in min] [Ø daily video viewing in min]

2015E 2020E

PayVoD consumption share Other video consumption share

259 217

PayVoD consumption share Other video consumption share

162 187

2015E 2020E

2%

4%

3% 5%

97% 95%

98% 96%

| Page 18

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| October 15, 2015 |

Online/mobile usage is driving reach of TV related content

1) Basis: A 14-49, “TV contacts“ with >1 min of viewing

2) Channel websites + 7TV app (live-streaming w/o 7TV app) in period Feb. 12, 2015 – Oct. 4, 2015 Source: AGF in cooperation with GfK/TV Scope/P7S1 TV Deutschland

Content reach: P7 linear TV + online/mobile

Linear TV

56.9

[views in m]

Online live streaming

1.0

Full episode catch-up

17.7

Total reach 88.0

+55%

vs. TV only season 10 (2015)

| Page 18

Short clips

12.4

+ + +

Example

Owned &

operated

online

Broad supply secures attractive content offering

Examples

Traditional licensors TV producers Digital

US majors Independents International National MCNs

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| October 15, 2015 |

The German TV market remains strong

High quality content typically available on FTA TV

Lower Pay TV penetration, limited willingness to pay

Online video consumption incremental to TV viewing

TV viewing expected to remain stable in the coming years

Studio contracts with supporting rights (incl. holdbacks)

Windowing and preference for German language protect FTA TV

and drive reach as well as monetization

Market dynamics Performance

review &

achievements

1

Strategic outlook

3

TV operations

2

Summary

4

1

| Page 22

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| October 15, 2015 |

Key strategic initiatives for sustainable growth

Ensure future-ready program mix

Secure top license content with attractive rights Increase share of own content

Digitally enhance viewer experience to drive reach

Execute value-based production and other cost efficiency measures

2 3 4 5 6

Broaden core channels and grow/launch small channels

1

Protect and strengthen value proposition of channels and aggregation

Successfully broadening our channel portfolio …

9M 2015 audience shares

1 2 3 4 5 6

Grow small channels

1.4% 1.4% 1.1%

Broaden core channels

10.9% 9.4% 5.3%

Increase female share Become younger Increase relevance

Focus on female Strengthen elder female Become broader

Broaden channel portfolio

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| October 15, 2015 |

… and continuing to launch new small channels

Families & mainstream middle class

Innovative low cost,

mono-thematic channels for stable target groups that are attractive for advertisers

Approach Target groups

Elderly/best agers

Females

Less digital Millennials

1 2 3 4 5 6

Targeted program mix and strategy

1 2 3 4 5 6

• Possibility for multi-channel &

multi-slot usage of formats

• Broad (re-)utilization in mix with other formats

• High repeatability

• Multi-functionality to improve economics of lighthouses

• Increased share of own content

Program strategy Targeted program mix 2020

Licensing (US/international)

Local lighthouse & live formats Repeatable quality entertainment

& reality formats

Content exchange/re-use

Local low cost innovations

~50%

~15%

~15%

~10%

~10%

Focus genres: reality, factual, fiction & entertainment

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Multi-functionality as a lever to improve lighthouse economics

Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun, full day 3-3h; only first runs Source: AGF in cooperation with GfK/TV Scope/P7S1 TV Deutschland

Lighthouse efficiency increase – example “Celebrity Big Brother” on SAT.1

Ø 17.7 ^%

(up to 22.5%)

Complementary format on sixx

Content exchange & 3rd party sales Online offerings

•

24/7 live feed

•

Clips/catch-up

•

Daily webshow &

newsfeed

Ø

4.9%

(up to 7.9%)

1 2 3 4 5 6

Multi-year output deals secure high quality license supply

1 2 3 4 5 6

Examples

Top license content

Key TV program already secured beyond 2019

| Page 28

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| October 15, 2015 |

Program rights management to protect our leadership position

| October 15, 2015 | Top license content

1 2 3 4 5 6

…qualifiers to ensure top content inflow

…holdbacks & windowing terms to protect FTA with exclusivity

…additional rights (e.g. Pay TV, VoD, A-CH, sublicensing) for add. utilization & marketing

Multi-channel &

strong digital platforms secure efficient

windowing/

monetization Continuous

optimization of acquisitions

with…

Increase share of own content

1 2 3 4 5 6

Develop according to channel needs, control total rights &

increase content sales potential

Own development &

commissioning

International co-production

Theatrical co- production

Better programs with stronger control of rights

Increase production value and control of rights at reasonable costs

Secure feature film at early stage with more rights and top track record

Examples

#1 in Germany in 2014

| Page 30

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| October 15, 2015 |

Multiple cost efficiency measures in place

1 2 3 4 5 6

Execute on value based production targets Rebalance commissioned portfolio

Avoid inefficient one-offs

Minimize high-risk lighthouse investments without payback

Increase share of repeatable quality entertainment & reality formats Further optimize programming

Maintain healthy program stock

Cost efficient big data content sourcing through Content Cloud System Push content sales for external clients

Use innovative production facilities to produce low cost TV formats

Efficieny measures

Digitally enhanced viewer experience to drive reach

1 2 3 4 5 6

2nd screen/digital entertainment

 Increase engagement through live streaming, periodic news feeds, web-only events & interactivity

 Make TV content viral & snackable (e.g. <120s teaser clips for mobile)

 ^Drive additional monetization

 Gain actionable customer insights

Social media

 Leverage social talk to create

„must see-appeal“ of formats

 Steer traffic/reach towards FTA and 2nd screen offerings

 Benefit from user generated content to increase „buzz“

Channel websites

Orchestration of platforms drives reach

Examples

| Page 32

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| October 15, 2015 |

Market dynamics Performance

review &

achievements

1

Strategic outlook

3

TV operations

2

Summary

4

1

Summary

TV remains strong in Germany

P7S1 continues to expand leadership in TV market

P7S1 is well positioned by combining its efficient channel/format mix with a digitally enhanced strategy

• Attractive mix of US content & cost-optimized local formats

• Efficient channel portfolio & genre mix

• Digitized broadcasting strategy

• Further cost optimization measures in place to mitigate content cost inflation

| Page 34

| October 15, 2015 |

October 15, 2015

Growing to the next level

Capital Markets Day 2015

Thomas Ebeling

TV Ad Sales

Continued TV market growth story

Key

achievements

1

P7S1 leading the market

3

Agenda

2

1

| Page 36

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| October 15, 2015 |

Key achievements since last year‘s Capital Markets Day

2

1 3

5 4

TV increasing share in media mix

P7S1 with increasing share of

TV advertising

Dynamic net price increase in past 5

years

P7S1 with leading ad sales innovations Net TV ad market

with solid growth

ProSiebenSat.1 with continued strong performance in 2015

2014 2015

TV ad market growth ¹⁾ (net) ~ +2-3% ~ +2-3%

TV share of advertising market ²⁾ (gross) 46.0% 44.4%

Share of advertising P7S1 ¹⁾ (gross) 44.5% 44.4%

Net CPT P7S1 core channels ¹⁾³⁾ Mid single-digit

increase Mid single-digit

increase

| Page 38

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| October 15, 2015 |

Continued TV market growth story

Key

achievements

1

P7S1 leading the market

3

Agenda

2

1

Mass reach becomes increasingly important in fragmented media landscape TV remains the last mass medium with increasing relative reach

• Massive reach decline of print

• Complex and fragmented digital media landscape

Continued price increases possible due to increase of relative reach, overcompensating potential reach losses

Combination of highest and fastest reach and strongest emotional ad

impact makes TV the most effective and efficient medium with highest proven ROI

TV market growth correlated to German private consumption, continued positive outlook for German economy

Why TV in Germany will continue its growth story (1/2)

| Page 40

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| October 15, 2015 |

YouTube does not add significant incremental reach to TV, since its usage is skewed towards few heavy users and German TV covers the younger audience groups

Facebook with limited professional content for video branding campaigns TV is still strongly undercapitalized vs. large German print market

Regional, addressable and individualized TV offers significant upside potential

Why TV in Germany will continue its growth story (2/2)

| Page 40

Existing opportunities for new markets

Solid growth potential for German net TV ad market

Basic market growth/net price increase National print cannibalization

Regional TV advertising

Individual TV premium advertising New markets/new segments

Shift to digital video

Overall growth potential

~180

~290

~50 tbd

~50 -130

∑ ~440 (CAGR 2-3%) Growth

Media mix

1 2 3 4 5

Net market growth potential 2018 vs. 2014 [in EUR m]

Market drivers

| Page 42

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| October 15, 2015 |

2012 2013 2014 2015

TV ad market pushed by sound economic conditions

TV & private consumption: in current prices; GDP: price adjusted, chain-linked

Source: Net TV ad market: Magna Global (June, 2015); 2012-2014 Destatis as of Sept. 2015; 2015 Joint Economic Forecast Autumn 2015

Net TV ad market

Ø growth since 2012:

+ 2.3 ^%

Private consumption

Ø growth since 2012:

+ 2.4 ^%

GDP

Ø growth since 2012:

+ 1.0 % 1 2 3 4 5

E

1.8 1.8

2.7

3.4

2.6

1.9 1.9

2.6

0.4 0.3

1.6

1.8

4.0

3.0

2.0

1.0

0.0

Net TV ad market, private consumption, GDP in Germany

[change in %]

+1.7%

German TV growth accelerates, yet still catch-up potential

Net TV advertising market Germany, UK and US

[indexed]

95 100 105 110 115

2010 2011 2012 2013 2014 2015

+0.7% +1.8% +1.8% +2.7%

US

Germany UK

+3.1%

+2.7%

1 2 3 4 5

CAGR 2010-14:

E

| Page 44

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| October 15, 2015 |

Ad intensity in US still three times higher than in Germany

Source: TV: Magna Global (June, 2015); Population: Zenith Optimedia (September, 2015)

TV advertising spend per capita 2014

69

206

x 3.0

[Germany vs. US, in USD (net)]

1 2 3 4 5

Germany with significant potential to catch up with

U.S.

Attractive pricing Highest effectiveness

TV is the most effective and efficient medium

166 190

367 442

0 100 200 300 400 500

Print InPage / Display InStream Video TV

Magazines Newspapers

50

15

Online 25

0.5

TV 15

5

40

10

Advertising effectiveness

[aided advertising recall, index 100 = without contact]

Net CPT ranges

[in EUR]

2.65

average long-term

ROI

1 2 3 4 5

| Page 46

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| October 15, 2015 |

TV in Germany is more price competitive compared to other European top TV nations

Source: DDS, ZAW/AGF GfK, IREP/Mediametrie, own calculations 2014

189

120

100

0 50 100 150 200

Ø Net-CPT (based on 20 seconds), adults

[index]

1 2 3 4 5

Brand advertising on TV most cost efficient

CPT comparison

100 112

210

266

TV Magazines Newspapers Instream video

100 130 173

736

TV Magazines Newspapers Instream video

[A 14-39] [A 40-69]

1 2 3 4 5

| Page 48

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| October 15, 2015 |

Strenghts of TV lead to further potential price upside

Basis: All TV-HH (D+EU), TA 1-30; SevenOne Media: SAT.1, ProSieben, kabel eins; IP: RTL, VOX Note: Market and IP based on estimates

Source: AGF/GfK, TV Scope, SevenOne Media, Pricing & Media Strategy, own calculations

Net CPT development

[index: 2007 = 100]

• Combination of highest/fastest reach leads to top ROI for TV

• Mass reach becomes

increasingly important vs. other channels:

• Massive print reach decline

• Complex/fragmented digital market

• TV will see increasing relative reach value

• Strengths of TV

90 100 110 120 130

2007 2008 2009 2010 2011 2012 2013 2014 2015

Market

1 2 3 4 5

E

TV usage share above print while ad share lagging behind …

TV usage share

clearly higher than print …

37%

4%

Print usage TV usage

… while TV advertising share

still lagging behind

37%

Print advertising

22%

TV advertising

1%pt increase in media mix equals

~EUR 60m net TV ad revenues for P7S1

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

1 2 3 4 5

%pts

∆

+33

%pts

∆

-15

| Page 50

| October 15, 2015 | | Page 50

| October 15, 2015 |

22

31

53

38

28

40 39 45

37 36

21 15 19 17 16

12 20 21

TV Print

… which strongly differs from media mix in other countries

Source: Magna Global (June 2015), TV incl. Multichannel/Pay TV, online including search & other

Share of advertising: TV vs. print 2014

[as % of total media]

1 2 3 4 5

EUR 1.6bn net national print spendings addressable by TV

2.9

Gross total

Addressable net market for TV Gross core TV

market potential Gross regional

potential

2.2

Not directly addressable

8.3

Daily newspapers Magazines

4.8 3.5

3.2

1.6 German gross print advertising market 2014

[in EUR bn]

1 2 3 4 5

| Page 52

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| October 15, 2015 |

~EUR 130m

~EUR 600m

~EUR 400m

Net effect from print gain will drive TV ad market growth

Estimate based on Magna Global (June, 2015), SevenOne Media own estimate

~EUR 290m

~EUR 200-250m

201 8 v s. 201 4

Print Digital video

CAGR 35.0%

-4.8%

CAGR

Display/social

CAGR 6.6%

Search/classified s

CAGR 6.9%

2-3%

CAGR

1 2 3 4 5

Several levers to address print advertising market

New channels to expand target groups

Smart channels to attack niche segments

Innovative TV packages for national print customers

Combined TV/mobile offer for large freesheets market

1 2 3 4 5

| Page 54

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| October 15, 2015 |

Limited catch-up risk of German digital ad revenues vs. US

Source: Magna Global (June 2015), SevenOne Media own estimate

10%

20%

30%

40%

2010 2011 2012 2013 2014 2015E

Digital share of total net ad revenues

| Page 54

1 2 3 4 5

incl. FB/YouTube

Limited competition for branding budgets – only by digital video

Digital net ad revenues, by format

[in EUR m]

Video TV

Comparison: TV and video ad market

[in EUR m]

2014 2015E 2016E 2017E 2018E

+35.0%

CAGR 2014-2018:

+10.9%

+36.2%

-3.0%

Video Social Display

Search

Other

4.2bn

0.3 bn

2014:

95% of digital ad revenues not critical for TV

1 2 3 4 5

Despite high online ad intensity digital companies still spend 75% on TV

| Page 56

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| October 15, 2015 |

TV is leading in reach and usage

Basis: TV viewers 3+; Internet users 2+; March 2015

Source: AGF in cooperation with GfK, TV Scope, Nielsen Netview, B4P, SevenOne Media own estimate

Monthly net reach & usage duration

Usage (hours/month) 50%

Monthly net reach 100%

120 100

80 60

40 20

0

Internet

Private TV Total TV

1 2 3 4 5

Daily TV net reach Germany

Almost 50% of young Germans reached by TV every day

14-29 years 14-39 years 14-49 years

net reach

89% 92% 94%

1 2 3 4 5

48%

56%

62%

| Page 58

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| October 15, 2015 |

[in %; size of bubbles = Ø share % adults 14-49]

In the US, attractive TV channels for young target group missing

Note: Sample comprises of top broadcasting and cable networks Source: AGF/GfK

0 25 50 75 100

0 10 20 30 40 50 60 70 80 90 100

Positioning age & gender: Full day, Ø 2014, top channels US

1 2 3 4 5

Male

Female

Old Young

[in %; size of bubbles = Ø share % adults 14-49]

0 25 50 75 100

0 10 20 30 40 50 60 70 80 90 100

Germany – especially P7S1 – has attractive TV channels for the young target group

Male

Female Old

Positioning age & gender: Full day, Ø 2014, top channels Germany

1 2 3 4 5

Young

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Strong TV viewing despite high YouTube penetration

1) A14-49; Source: SevenOne Media, Forsa 2015

Basis: n=3.032; Total TV incl. live streaming, recorded viewing and catch up

Source: SevenOne Media Online Video Usage Study 2015, Media Activity Guide 2015, SevenOne Media/forsa

1.5

73

2.2

14+ 14-49

TV has by far the highest daily usage

69%

Watch YT at least once a

month

100 1 2 3 4 5

Ø viewing time 2015

[ indexed]

Ad comparison: Aided ad awareness Ø Daily YouTube reach by time category

YouTube with much lower reach and ad effectiveness

Adults 14+

[in %]

Index

0 10 20 30 40 50

1 - 2 min 2 - 3 min 3 - 4 min

viewing time

100 200 300 400 500

Without contact

InPage InStream

up to 1 min TV

TV ads are…

+132 %

more entertaining

+88%

more sales stimulating

+75%

more credible

1 2 3 4 5

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| October 15, 2015 |

YouTube usage heavily concentrated …

Base: Adults 14+ years

Source: SevenOne Media Online Video Usage Study 2015 Share of YouTube users per usage [in %]

0 25 50 75 100

YT heavy users Almost heavy users Majority of users

2/3 of YouTube usage is generated by only 13.5%

of heavy users Low YouTube usage of

broad majority,

preferred target group for advertiser

YouTube usage

YouTube users

33

33

33

86.5 1 2 3 4 5

9.6 3.9

… by users which can be reached by TV

YouTube heavy users watch more TV than average:

[index usage per day

]

111 100

YT heavy user Average TV user

0 20 40 60 80 100 120

1 2 3 4 5

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| October 15, 2015 |

Social daily usage stagnating, but higher fragmentation

Base: Internet users aged 16-64, excl. China Source: Global Webindex Q1 2014 & Q4 2014

54

35 32

20 95

47

38

Growth in members (in %) Growth in active users (in %)

Top growth performers 2014: social platforms

Pinterest Tumblr Instagram LinkedIn

Time spent on social networks

[global daily average use, in hrs]

1.61

2012 2015E

1.67 1.72 1.69

2014 2013

97

Very fragmented market with new platforms

growing

fastest

1 2 3 4 5

Millennials’ media usage strongly shifts to TV after career start

Millennials (aged 14-34): Ø daily TV, online & online video usage

[in min]

81

112 139 148

103

99

58

42

23

TV

Online video +38%

+33%

-28%

-45%

1 2 3 4 5

Online -25%

-4%

150

100

50

0

Pupils Students/apprentices Young professionals

| Page 66

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| October 15, 2015 |

Two big new opportunities

1 2 3 4 5

Approach

Regional

Individualized Targeting

HbbTV 1.0

Overlay products

HbbTV 2.0

Spot replacement

Future Platforms

Spot replacement

&

product bundles Target segments

• New geographic target groups

• Premium pricing for…

… targeted audience groups

… advertisers less focused

on fast reach but more on

hyper-specific targeting

Additional EUR 1.7bn regional spendings addressable by TV

German print, radio and out-of-home gross advertising market 2014

[in EUR bn]

11.2 1.3 1.6

3.5

4.8

3.3

7.9 4.4

1.7

Not addressable

for regional Gross total

adjusted Not directly

addressable

Gross regional potential Gross

total

Net regional potential Outdoor

Radio

Magazines

Daily newspapers

3.5 1 2 3 4 5

EUR 600m from radio and outdoor

ad market adressable on top of

regional print ad potential of

EUR 1.1bn

| Page 68

| October 15, 2015 | | Page 68

| October 15, 2015 |

Existing solution: cable spot overlay National spots with regional discount

HbbTV 1.0 non-spot products HbbTV 2.0 spot overlay

IPTV spot overlay (cooperation req.) Mobile live stream targeting (e.g. 7TV) SAT.1 regional windows





(Short-term)









Several levers to address regional potential











(Long-term)



(Potential ban 2016)

 

Reconfirming market potential

by 2018 at

EUR 50 ^m

1 2 3 4 5

First cases of regional TV advertising realized, but ban impending for 2016

First successful pilot cases set up in NRW, Hessen and BW

High market demand for regional TV ads

Political ban in the broadcasting law impending for 2016

Approved by Federal Administrative Court

Q3 2015:

All other transmission areas of Kabel Deutschland

(all other regions)

14 15

12 10 8 6

2 1

Apr Mar

Feb May Jun Jul Aug Sep

Client build-up 2015

1 2 3 4 5

| Page 70

| October 15, 2015 | | Page 70

| October 15, 2015 |

We are innovation leader in addressable TV

SwitchIn

Spot overlay

1 2 3 4 5

Fast growing HbbTV will allow regionalization

Digital overlays on TV signals

• Red Button TV Spot with regional overlay & microsite

• Red Button SwitchIn (microsite program layover when switching to P7S1 channel)

• Red Button CutIn

(layover during linear program, testing)

Linear TV spot replacement/overlay

Existing products, HbbTV 1.0

HbbTV 2.0 starting 2016

Number of connected TV sets in Germany

[in m]

HbbTV penetration

1 2 3 4 5

0 5 10 15 20 25 30

2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E

Connected TV incl. Hbb TV Hbb TV 2.0

16.2

22.8

29.8

8.2 4.2

1.1

28.4 26.0

12.4

19.8

| Page 72

| October 15, 2015 | | Page 72

| October 15, 2015 |

Microsite with videos and store locator Automatic display of all stores nearby Store websites linked via QR Codes

Successful pilot case

Product launch completed

| Page 72

In Q4 2015 client on top bookings of full product range

1 2 3 4 5

First regional overlay on national spot via HbbTV geo-targeting

Regional TV advertising

Targeting approach

Addressable TV will develop more accurate targeting

Regional

Audience targeting

Established products

Planned

IP address linked to …

… directly available data

• Regional data

… demographic data

• Purchase power (income)

• Size of household

• …

… predictive data

• Browser history data

• Other real time data

1 2 3 4 5

| Page 74

| October 15, 2015 | | Page 74

| October 15, 2015 |

Linking TV and Digital to develop superior targeting products

Buying intent Topic affinities

User-specific data across all P7S1 digital assets in a unified data pool

Digital

IP address

32m

Unique Users

42m

TV household reach in D-A-CH

1 2 3 4 5

Data Management Platform

Source: SOM own calculation

Other new customer segment budgets Betting and lottery market potential

[in EUR m]

New segments and budget types to support TV growth

Sales

Win promotion budgets for TV

Recruiting/HR

Support recruitment campaigns

Corporate PR

Support PR & event campaigns 82

60

40

2015E 2016E 2018E

+105%

Charity

Discover mass reach effect

Healthcare

New business & innovation

1 2 3 4 5

| Page 76

| October 15, 2015 | | Page 76

| October 15, 2015 |

Individualized TV targeting offers opportunities

1 2 3 4 5

New advertising

segments addressable

through attractive individualized

TV targeting

Better cannibalize print

Better products vs. digital

New niche customers for TV

Continued TV market growth story

Key

achievements

1

P7S1 leading the market

3

Agenda

2

1

| Page 78

| October 15, 2015 | | Page 78

| October 15, 2015 |

2012 2013 2014 2015 YTD

Relative share of TV ratings vs. relative share of TV advertising

We increasingly capitalize our audience share gains from new channels

1) P7S1: SAT.1, ProSieben, kabeleins, sixx, P7Maxx, SAT.1Gold 2) RTL: RTL, Vox, Super RTL, n-tv, Nitro

Net share of TV advertising

[in %]

48 52 56

2010 2011 2012 2013 2014 2015

55%

YTD

52%

Share of TV ratings (P7S1

vs. RTL

)

Share of TV advertising

(P7S1

vs. RTL

)

[in %]

Focus on innovation & digital extension

360° conception

Sales concepts according to market needs

Innovative ad concepts Unique digital TV extension portfolio

Digital conception

Customized concepts for TV & online

Content Marketing

Advertorial content that is integrated over all platforms (digital, TV & social)

Thematic ad breaks, theme weeks/days Special packaging & exclusive positioning

Live spots

TV spots with life action

TV brand extension with TVSMILES Extends TV campaigns directly to mobile

TV retail extension

Combined TV/shopkick offer

Freesheets with marktguru.de Extend TV with mobile free sheets

HbbTV

Brand engagement on first screen Talenthouse/magisto

Brand engagement campaigns

| Page 80

| October 15, 2015 | | Page 80

| October 15, 2015 | Content

Marketing

service by SevenOne AdFactory

Distribution Production

Agency services Advertiser

base

Address market demand for end-to- end content marketing services

Deliver powerful ideas and creativity integrated into a holistic content strategy

Leverage existing content portfolio and produce new contents to the needs of our customers

Add reach through own TV/digital portfolio and 3^rd party network

Analytics as a service

Supports content production (CMS), distribution & reach generation, reports & data, Ad Tech, offers continuous campaign optimization Scale through Marketing budgets Conception Licenses, production Media

DIGITAL

80%

of companies will invest into content marketing by 2018

P7S1 offering the whole range of content marketing –

opportunities in a large growth segment

Offering content across all touchpoints of the customer journey

Reach

Engagement

Transaction URBAN

STORIES

Leads on FIAT website for test drives

TV/Digital Sweepstakes

landing page integration on facebook.com/fiat Weekly TV stories

on sixx/

ProSiebenMAXX

Teasing spots on major channel

ProSieben

Program

sponsorings Ø200k

Viewers per episode

1.3m

Facebook fans reached

>1,000

Qualified leads

+55%

Channel market share¹⁾

| Page 82

| October 15, 2015 | | Page 82

| October 15, 2015 |

We already cover all future advertiser needs

Reach

Emotional branding

Social interaction

Commercial interaction

Launch of Marktguru: A new commerce connector

TV reach boost

Attention Impulse Interaction with offers Transaction

Theme worlds Interactive brochure

Sales basket

POS visit

Online shop Product search

Nearest POS

| Page 84

| October 15, 2015 | | Page 84

| October 15, 2015 |

MINI Cooper: First German Instagram-based TV spot

Post it on Instagram at

#miniblockbuster

Show on TV

Take a picture

Summary

2 3 4 5 1

TV will further win budgets from print – digital is fragmented

The US TV market is different and not focused on youngsters

We will further grow TV as an innovation driver in new markets and segments

TV with strongest and proven ROI due to highest and fastest reach

YouTube and Facebook are not adding significant incremental

reach to TV

| Page 86

| October 15, 2015 |

October 15, 2015

Growing to the next level

Capital Markets Day 2015

Conrad Albert

Distribution

Target confirmation

Long-term growth potential Strong growth

maintained

• Growth continuity for

revenues (+29%

) and rec.

EBITDA contribution

• HD subscriptions +19%

Unique maxdome-TV bundle products

• Bundles with Unitymedia and Tele Columbus

Distribution expansion with

terrestrial and digital deals

• Platform proliferation, e.g.

DVB-T2, TV Spielfilm, Couchfunk

• Revenue growth of +EUR 100m to EUR 155m in 2018

• HD subscriptions 2018: 9.2m

• Analog melt-down by 2018

• UHD and further technology developments

• Encryption of SD after 2022

Performance Outlook

Executive summary

| Page 88

| October 15, 2015 | | Page 88

| October 15, 2015 |

Distribution delivers strong growth and confirms CMD target 2018

50

50

155

55

105

H1 2015 LTM Delivered

increase

Remaining target

CMD target 2018 Actual 2012

External revenues

[in EUR m]

• Additional pay offerings via OTT

• Ongoing growth of mobile and streaming offerings

• HD growth will continue – UHD screen push in 2016, DVB-T2 HD- only launch in 2017, analog melt- down 2016/17

• Double-digit revenue growth over

the years will be maintained

Distribution in Germany – historically dominated by large players

Terrestrial (DVB-T) Playout

(Unterföhring) Uplink

19.2° East

Cable networks

IPTV networks

Satellite Cable operators

IPTV

Satellite (direct-to-home) Mobile

Terrestrial

• Quasi-monopolistic players with stable market shares

2015 HH: 18.2m 2015 HH: 16.9 m

(5.6m HH analog)

2015 HH: 2.3 m 2015 HH: 2.2 m

| Page 90

| October 15, 2015 | | Page 90

| October 15, 2015 |

Platforms since 2014 (mobile, apps)

MobileTV

New platforms create opportunities beyond incumbents

Broadcaster

Aggregators

Telcos

Improved negotiation leverage for P7S1

Potential for additional revenues

and/or reduction of distribution costs

Platforms so far complementary,

no cord-cutting

Free-TV distribution via cable and satellite remains dominant

High speed broadband access

– i.e. metropolitan areas >90%, rural areas ~50%

Substitution restrictions of OTT/mobile TV

Mobile tariffs

– not enough capacity for “everywhere TV”

Heavy usage

– broadband infrastructure not yet ready

Mid-term development

Restrained broadband upgrade – vectoring to increase capacity for rural areas

Wireless online video consumption – i.e. in home

Mobile tariffs without data limitations for TV – e.g. Deutsche Telekom

first mover

| Page 92

| October 15, 2015 | | Page 92

| October 15, 2015 |

Growth upside from technical evolution and regulatory relief

Technological development creates added value for the consumer and generates monetization

opportunities

Encryption of SD signal 2022 onwards possible,

with new bundle and monetization options

Analog melt-down of remaining approximately

5.6m cable households supports HD conversion

Our key strategic initiatives

Encryption – first time encrypted terrestrial distribution in HD with DVB-T2 Mobile distribution – new deals for offering full distribution to our audience

Bundling – negotiate bundling deals with our platform partners Digital distribution – partner with leading global players

2 3 4 5

HD subscriptions – drive further growth

1

| Page 94

| October 15, 2015 | | Page 94

| October 15, 2015 |

2.8

9.2

FY 2013

FY 2014

2018E

4.8 3.7

5.7

1.8

H1 2015 H1

2014

4.2

5.3

H1 2012

FY 2012

H1 2013

3.5

1) HD pay penetration based on total TV households in Germany (39.6m) Source: Astra TV Monitor

HD FTA subscribers

[in m]

HD growth levers

Platforms will grow HD through hard bundling and upselling

1

Analog melt down/digital HH increase

~1m potential HD households

2

Continued technical evolution (HD/UHD screens) push

HD take rate

3

Conversion of HD free users into paying subscribers (focus on satellite)

4

HD push measures initiated by P7S1 to sustain HD growth

5

Increasing number of households subscribe to HD technology

HD penetration¹⁾

4.5% 7.1% 9.3% 10.6% 12.1% 13.4% 14.4%

HD subscriptions

1 2 3 4 5

23.0%