IR Presentation Q1 2016

(1)

| Page 1

| February 25, 2016 |

May 3, 2016

Q1 2016

IR Presentation

(2)

| Page 2

| May 3, 2016 | | Page 2

| May 3, 2016 |

Agenda

At a Glance 1

Financial Performance Review 2

Operational Performance 3

Summary & Outlook 4

Broadcasting German-speaking & Red Arrow 3.1

Digital & Adjacent 3.2

(3)

| Page 3

| February 25, 2016 |

May 3, 2016

Q1 2016

At a Glance

Thomas Ebeling

Chief Executive Officer

(4)

| Page 4

| May 3, 2016 | | Page 4

| May 3, 2016 |

Key financials in Q1 2016

Continuing operations

[Q1 2016 vs. Q1 2015; in EUR m]

Revenues

Recurring EBITDA

Underlying net income

✔

802 170 76

+22%

+12%

+8%

1 2 3 4 Q1 2016 – At a Glance

(5)

| Page 5

| May 3, 2016 | | Page 5

| May 3, 2016 |

Continued dynamic growth across all three business segments

Continuing operations, external revenues.

Content Production

& Global Sales

+EUR 17m

Revenue growth vs. Q1 2015

Broadcasting German-speaking

Distribution TV advertising

+4% +14%

+EUR 23m +5%

Digital & Adjacent

Digital

Entertainment Ventures &

Commerce Adjacent

+66% +110% -44%

+EUR 103m

+75% +38%

1 2 3 4 Q1 2016 – At a Glance

(6)

| Page 6

| May 3, 2016 | | Page 6

| May 3, 2016 | Continuing operations 1 2 3 4 Q1 2016 – At a Glance

Our milestones from 2009 until our DAX entry

2011 2012 2013 2014 2015 2016

2010

Founding Launch

Fully acquired

Disposal of Benelux TV activities

First CMD target: EUR

>750m growth potential until 2015

Disposal of TV and radio activities in the Nordics

Share class merger

CMD target: Group revenue growth 2018 by EUR 1bn

Almost 100%

free float after KKR and Permira exit

2015 revenue target already achieved YE 2014

Acquisition

Share price at EUR 50.70 CMD target increased:

Group revenue growth 2018 by EUR 1.85bn

Entry into the

Founding Launch Launch

Founding

Acquisition

Acquisition of CDS and merger with Studio71

2009

German free TV channels pooled in one location

Sales subsidiaries for online + TV services merged

Founding

(7)

| Page 7

| May 3, 2016 | | Page 7

| May 3, 2016 |

2018 Group revenue growth target

1 2 3 4 Q1 2016 – At a Glance

1,926

335 95

2,356 2,175

950

280

3,408

2,301

1,535

370

4,206

Broadcasting German-

speaking Digital & Adjacent Content Production &

Global Sales ProSiebenSat.1 Group

57%

+EUR 375m +EUR 1,200m +EUR 275m +EUR 1,850m

>30% 15-20% ≥10% ~26.0%

2012-18 revenue growth target

[in EUR m, degree of achievement]

66% 51% 67%

745 943 1,095

Group rec. EBITDA

57%

2018 revenue growth target Rec. EBITDA margin profile 2018E

Degree of achievement Rec. EBITDA growth target

[in EUR m, degree of achievement]

2018 target 2012 Q1 2016 (LTM)

(8)

| Page 8

| May 3, 2016 | | Page 8

| May 3, 2016 |

We confirm our positive full-year guidance

Recurring EBITDA and underlying net income above prior year

✔

Ad performance in line with positive net TV ad market

✔

Digital & Adjacent with double-digit revenue growth

✔

Group revenue growth to exceed +10%

✔

1 2 3 4 Q1 2016 – At a Glance

(9)

| Page 9

| May 3, 2016 | | Page 9

| May 3, 2016 |

Enlarged Executive Board to further strengthen digital business

1 2 3 4 Q1 2016 – At a Glance

Conrad Albert EXTERNAL AFFAIRS, INDUSTRY RELATIONS &

GENERAL COUNSEL Dr. Gunnar Wiedenfels

CHIEF FINANCIAL OFFICER Dr. Ralf Schremper

STRATEGY & INVESTMENT Dr. Christian Wegner

DIGITAL VENTURES &

COMMERCE

Jan Frouman CONTENT & BROADCASTING

Thomas Ebeling CHIEF EXECUTIVE OFFICER

Christof Wahl DIGITAL ENTERTAINMENT &

COO

Since May 1, 2016

(10)

| Page 10

| February 25, 2016 |

May 3, 2016

Q1 2016

Financial Performance Review

Dr. Gunnar Wiedenfels Chief Financial Officer

(11)

| Page 11

| May 3, 2016 | | Page 11

| May 3, 2016 | Continuing operations 0

500 1,000

0 50 100 150

200 153 170

+22%

Q1 2016

655 802

Q1 2015

Consolidated revenues

[in EUR m] Recurring EBITDA

[in EUR m]

Q1 2016 Q1 2015

Recurring EBITDA margin:

21% (-2%pts) +12%

Q1 2016: dynamic revenue and recurring EBITDA increase

1 2 3 4 Q1 2016 – Financial Performance Review

(12)

| Page 12

| May 3, 2016 | | Page 12

| May 3, 2016 |

Q1 2016: Group revenue growth driven by all segments

Broadcasting German-speaking

Key Group revenue growth drivers vs. PY [Q1 2016 external revenues; growth rates in %]

Digital & Adjacent Content Production & Global Sales

TV advertising EUR 454m, +4%

Digital Entertainment EUR 86m, +66%

Red Arrow EUR 63m, +38%

Distribution EUR 29m, +14%

Ventures & Commerce EUR 146m, +110%

Adjacent EUR 9m, -44%

EUR 493m, +5% EUR 242m, +75% EUR 63m, +38%

(13)

| Page 13

| May 3, 2016 | | Page 13

| May 3, 2016 |

Q1 2016: high single-digit underlying net income growth

Continuing operations -50

-25 0 25

-28 -24

-17%

Financial result [in EUR m]

Q1 2016

Q1 2015 ⁰

20 40 60 80 100

+8%

Q1 2016 76

Q1 2015 70

Underlying net income [in EUR m]

(14)

| Page 14

| May 3, 2016 | | Page 14

| May 3, 2016 | Continuing operations; recurring EBITDA on entity basis.

External revenues and recurring EBITDA [in EUR m]

Broadcasting German-speaking: continued solid revenue and recurring EBITDA improvement

Q1 2016 Q1 2015 y-o-y Comments

Ext. revenues 493 471 +5% TV advertising business benefitted from continued positive advertising environment and minor positive effect due to earlier Easter.

Distribution revenues again driven by continued strong demand for HD channels as well as increased mobile revenues.

TV advertising 454 437 +4%

Distribution 29 26 +14%

Rec. EBITDA 131 126 +4% Rec. EBITDA increase almost in line with

revenue growth.

(15)

| Page 15

| May 3, 2016 | | Page 15

| May 3, 2016 |

Digital & Adjacent: successful acquisitions drive segment revenue and recurring EBITDA

Q1 2016 Q1 2015 y-o-y Comments

Ext. revenues 242 138 +75% Dynamic revenue growth in Digital

Entertainment and Ventures & Commerce primarily driven by consolidation effects as well as strong growth of maxdome.

Adjacent affected by missing live events with former ProSieben host Stefan Raab and slow-down in Live Entertainment.

Digital Entertainment 86 52 +66%

Ventures & Commerce 146 70 +110%

Adjacent 9 17 -44%

Rec. EBITDA 35 27 +29% Rec. EBITDA increase below revenue

growth partly due to strong growth of lower-margin businesses.

Continuing operations; recurring EBITDA on entity basis.

(16)

| Page 16

| May 3, 2016 | | Page 16

| May 3, 2016 |

Content Production & Global Sales: continued double-digit revenue growth and notably improved profitability

Q1 2016 Q1 2015 y-o-y Comments

Ext. revenues 63 46 +38%

Continued solid revenue growth mainly driven by US production business as well as Red Seven Entertainment. Positive consolidation effects from the acquisition of Karga Seven and Dorsey Pictures.

Total revenues 76 56 +37%

Rec. EBITDA 5 1 >100% Solid rec. EBITDA margin well above prior year.

Continuing operations; recurring EBITDA on entity basis.

(17)

| Page 17

| May 3, 2016 | | Page 17

| May 3, 2016 |

Q1 2016: Group P&L – improvement of all key metrics

Continuing operations; 1) Result for the period attributable to shareholders of ProSiebenSat.1 Media SE.

[in EUR m] Q1 2016 Q1 2015 Δ

Revenues 802 655 +22%

Recurring EBITDA 170 153 +12%

Non-recurring items -9 -7 +25%

Thereof M&A-related -3 -1 +127%

EBITDA 162 146 +11%

Depreciation and amortization -39 -29 +37%

Thereof PPA -10 -4 >+100%

Operating result (EBIT) 122 117 +5%

Financial result -24 -28 -17%

Thereof interest result -26 -21 +20%

Earnings before tax (EBT) 99 89 +11%

Net income¹⁾ 66 61 +9%

Underlying net income 76 70 +8%

(18)

| Page 18

| May 3, 2016 | | Page 18

| May 3, 2016 | Financial leverage: Net debt/LTM rec. EBITDA (LTM rec. EBITDA of EUR 943m (previous year: EUR 860m) for continuing operations); 1) Mainly repayment of finance lease liabilities, dividend payments to non-controlling interests, payments for businesses without change in control and financing costs.

Financial leverage at the end of Q1 2016 well inside target range of 1.5-2.5x net debt to recurring EBITDA

1,500

342

609

26

523

1,953

0 500 1,000 1,500 2,000 2,500

31/03/2015 2014 dividend payment

M&A spend Other FCF before

M&A 31/03/2016

Net debt [in EUR m]

M&A spend to a large extent covered by strong FCF generation from operating activites of

>EUR 500m (LTM)

Net financial debt

Financial leverage

1.7x 2.1x

1)

(19)

| Page 19

| May 3, 2016 | | Page 19

| May 3, 2016 |

Financial outlook for 2016

Financial leverage 1.5x – 2.5x

Recurring EBITDA above prior year

Underlying net income above prior year

Group revenue growth (in %) >+10%

(20)

| Page 20

| February 25, 2016 |

May 3, 2016

Broadcasting German-speaking

& Red Arrow

Thomas Ebeling

(21)

| Page 21

| May 3, 2016 | | Page 21

| May 3, 2016 |

Germany with slower start while Austria performs strongly

Basis for GER: All German TV households (GER+EU/German-speaking), A 14-49; Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; Basis for A: A 12-49; Mon-Sun, 3-3 h, incl. P7 MAXX Austria and S1 Gold Austria (from Jul 15, 2014 onwards); Basis for CH: D-CH; A 15-49; Mon-Sun, 3-3 h, incl. PULS 8 (from Oct 08, 2015 onwards); Source: Mediapulse TV-Panel. Source: AGTT / GfK: Fernsehforschung / Evogenius Reporting.

1 2 3 4 Broadcasting German-speaking & Red Arrow

Switzerland

(A 15-49)

Austria

(A 12-49)

Germany

(A 14-49)

Q1 2016

18.2%

28.1%

23.5%

Audience share [in %]

Q1 2015

18.3%

28.9%

21.5%

(22)

| Page 22

| May 3, 2016 | | Page 22

| May 3, 2016 |

We see an upward trend from February onwards …

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.

Audience share development Germany (A 14-49)

[in %]

+1.1

+0.4

March 2016

28.8

February 2016

28.4

January 2016

27.3

(23)

| Page 23

| May 3, 2016 | | Page 23

| May 3, 2016 |

Audience share (A 14-49)¹⁾ Share of advertising²⁾

… and maintain our leading position in the German market

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

2) Gross values; Source: Nielsen Media Research / SevenOne Media, Sales Steering & Market Insights.

[Q1 2016; in %] [Q1 2016; in %]

28.1 25.5

33.5 42.4

+8.9∆ +2.6∆ %pts

%pts

(24)

| Page 24

| May 3, 2016 | | Page 24

| May 3, 2016 |

Our targeted channels represent 13% of the entire niche market

1) Sum of P7S1 niche channel audience share as % of sum of audience share of non-top 10 channels;

Basis: All German TV households (GER+EU), A 14-49; Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.

Share of non-top 10 channels in German TV market

[FY; A 14-49; in %]

1%

2015

∑29% (=100%) 13%

2010

∑ 18% (=100%)

1)

(25)

| Page 25

| May 3, 2016 | | Page 25

| May 3, 2016 |

We will launch a new channel to complement our broad portfolio

Source: ProSiebenSat.1 TV Deutschland

young male

female old

A 14-59

Our channel portfolio (Germany) Key target groups

Further channel concepts under evaluation Launch

Q3 2016

Documentary

channel M 40-65

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

Documentary

channel RTLNITRO

(26)

| Page 26

| May 3, 2016 | | Page 26

| May 3, 2016 |

Successful commissioned, license and event formats in Q1

Basis: All German TV households (German-speaking), A 14-49; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; 1) Up to 50.7% for Q4.

GNTM

Examples

(Local) commissioned (US) license Events

Die Hebamme 2

The Big Bang Theory NFL/Superbowl

TVOG Kids

Kiss Bang Love ZOO

The X-Files

Supergirl Oscars

Up to

14.3% 20.5%^{Up to} 19.7%^{Up to} 43.8%^{Up to}¹⁾

13.5%

Up to

14.1% 18.0%^{Up to} 16.6%^{Up to} 28.6%^{Up to}

Up to

19.7%

(27)

| Page 27

| May 3, 2016 | | Page 27

| May 3, 2016 |

True blockbuster character of GNTM in its 11^th season

1) Average of first 9 episodes of each season; Basis: All German TV households (GER+EU/German-speaking), A 14-49;

2) Channel websites + 7TV app/SmartTV (live-streaming w/o 7TV app) + HbbTV + MyVideo + Syndication

from season start until 9th episode 2015 and 2016, excl. YouTube; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.

Audience share linear TV¹⁾ Video views²⁾

Case Study

First 9 episodes

[A 14-49; in %] First 9 episodes

[Video views; in m]

Owned & operated online reach incl. online live stream, full episode catch-up and short clips

2016 2015

17.1

14.9 17.6

2015

25.1

2016

+2.2∆

%pts +43%∆

(28)

| Page 28

| May 3, 2016 | | Page 28

| May 3, 2016 |

Many of our proven commissioned titles will return…

Examples

(Local) commissioned pipeline

The Voice of Germany

Einstein (series)

The Taste Promi Big Brother

Gödde on Tour

Superkids

3,2,1 Musik Bitte melde dich

(29)

| Page 29

| May 3, 2016 | | Page 29

| May 3, 2016 |

…and we will continue to air top US blockbuster movies & series

Examples

(US) license blockbuster pipeline

Transformers IV The HG: Mockingjay I Blindspot

CM: Beyond Borders Legends of Tomorrow

Limitless

12 Years a Slave Godzilla

(US) license series pipeline

(30)

| Page 30

| May 3, 2016 | | Page 30| Page 30

| May 3, 2016 | Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland;

1) Red Arrow Entertainment Group share of absolute number of new commissioned formats in 2015; 2) 2016; 3) 2015.

RA already contributes >20% of our new local commissions

Married At First Sight

Examples of successful local in-house formats in German Free TV

The Taste Kiss Bang Love

Up to

12.2%³⁾ Up to

10.7%³⁾

>20%

of commissioned new launches

come from Red Arrow¹⁾

Up to 14.1%²⁾

Audience share [A 14-49; in %]

(31)

| Page 31

| May 3, 2016 | | Page 31

| May 3, 2016 |

ProSieben Premiere 27.0% share among A 14-29 Sky 1

Season 10 Biggest series launch since 2010

A&E / FYI Season 3

#7 in Top 150 US cable shows Amazon Prime

Season 2 Season 3 already commissioned

Red Arrow‘s on-air shows engage audiences worldwide

(32)

| Page 32

| May 3, 2016 | | Page 32

| May 3, 2016 |

Red Arrow with best Q1 financial performance since launch

External revenues Recurring EBITDA

63 46

Q1 2016 Q1 2015

5

1

Q1 2016 Q1 2015

[in EUR m] [in EUR m]

>+100%

+38%

(33)

| Page 33

| May 3, 2016 | | Page 33

| May 3, 2016 |

Broadcasting German-speaking & Red Arrow: outlook 2016

Focus on core channels ProSieben and Sat.1

Launch new docu/factual channel to broaden portfolio

Leverage TVD - Red Arrow relationship for content creation

1 2 3

(34)

| Page 34

| February 25, 2016 |

May 3, 2016

Broadcasting German-speaking

Ad Market Performance

Thomas Ebeling

(35)

| Page 35

| May 3, 2016 | | Page 35

| May 3, 2016 |

Positive development in Q1 2016

1) Source: Nielsen Media Research; Note: gross figures excl. YouTube and Facebook.

1 2 3 4 Broadcasting German-speaking / Ad Market Performance

Continued positive pricing development

✔

Growing number of addressable TV campaigns

✔

P7S1 German-speaking TV net advertising revenue growth of +4%

✔

Continued increase of TV share in media mix¹⁾

✔

(36)

| Page 36

| May 3, 2016 | | Page 36

| May 3, 2016 |

Advertising share in German-speaking markets

Basis: Q1 2016; Source: Nielsen Media Research / Media Focus. | Page 36

| Page 36

Switzerland Austria

Germany

ProSiebenSat.1 gross TV ad market share [in %]

Q1 2015

29.0%

43.6%

35.7%

Q1 2016

28.0%

42.4%

36.3%

(37)

| Page 37

| May 3, 2016 | | Page 37

| May 3, 2016 | Basis: Q1 2016; Source: Nielsen Media Research. Online excl. search, affiliate and others not reporting their bookings to Nielsen (e.g. YouTube, Facebook).

TV continues to benefit at the expense of other media

Gross ad spendings, Germany [Q1 2016 vs. Q1 2015; in % and %pts]

Outdoor, Cinema Magazines Newspapers Radio

TV Total

Online

-0.9%pts -0.4%pts -0.9%pts

+1.5%pts 100.0%

47.7%

10.4%

6.1%

16.6%

12.8%

6.4%

Share of segment Change in media mix

+0.6%pts +0.1%pts

(38)

| Page 38

| May 3, 2016 | | Page 38

| May 3, 2016 | Basis: Q1 2016; Source: Nielsen Media Research (excl. Media & Publishing and Other Advertising).

8 out of 10 biggest industries increased TV budgets

Gross TV ad spendings of top 10 TV industries, Germany [Q1 2016 vs. Q1 2015; in EUR m; % and %pts]

456 434 423 375 241 201 180 139 125 85 3,333

13.7%

13.0%

12.7%

11.3%

7.2%

6.0%

5.4%

4.2%

3.8%

2.6%

+3.8%

+4.4%

+33.8%

+20.1%

+14.9%

-4.5%

+6.0%

+31.6%

-9.5%

+11.3%

+1.9%pts -0.5%pts +4.0%pts +1.9%pts +1.9%pts +0.1%pts +1.3%pts +2,4%pts +0.6%pts +1.0%pts

100.0% +10.4% +1.5%pts

in EUR m Share Δ Δ TV in media mix 313

17 18

107 63 31 -9

10 33 -13

9 in EUR m

Detergents Finance Beverages Telecommunication Food Cosmetics & Toiletries

Motor Vehicles Pharmacy Business Services Trade & Shipment Total

(39)

| Page 39

| May 3, 2016 | | Page 39

| May 3, 2016 |

Online businesses further shift ad spendings to TV

TV share in media mix of eCommerce and online services [in %]

Online businesses value the power of TV

61 73 74

2011 2015

+13pts%

Q1 2016

(40)

| Page 40

| May 3, 2016 | | Page 40

| May 3, 2016 |

CPT increase of all ProSiebenSat.1 core channels in Q1

CPT = Cost Per Thousand; Basis: all TV households in Germany (GER+EU/German-speaking); A 14-49, Mon-Sun, 3-3 h;

Source: AGF in cooperation with GfK / TV Scope / SevenOne Media / Pricing & Media Strategy.

4.5

1.2

3.7

-1.2

2.9

Gross CPT growth

[Q1 2016 vs. Q1 2015; in %]

(41)

| Page 41

| May 3, 2016 | | Page 41

| May 3, 2016 |

Innovation leader in HbbTV-enabled addressable TV ad business

Walt Disney Opel Lexus

Canon Electronic Arts Tirol

Ferrero Eurowings

E WIE EINFACH

campaigns20

12 clients in Q1

SwitchIn XXL

SwitchIn

Spot overlay

(42)

| Page 42

| May 3, 2016 | | Page 42

| May 3, 2016 |

Relaunch of non-linear HbbTV platform in H2 2016

Possible HbbTV product features

EPG

Commerce Trailer

Catch Up

Studio71 Content Gaming

Live Votings Timeshift

(43)

| Page 43

| May 3, 2016 | | Page 43

| May 3, 2016 |

Launch of channel apps to strengthen TV brands

• Strengthening the ProSiebenSat.1 TV brands and

complementing 7TV

• Serving the

increasing demand of our audiences for their favorite channels

• Providing brand related content any time and place

(44)

| Page 44

| May 3, 2016 | | Page 44

| May 3, 2016 |

TV benefits from increasing awareness of digital ad weak points

10-20% of digital reach fraudulent by robot traffic 63% of digital advertising not viewable

51% of digital videos not started by consumer

15% of digital advertising in environments with risks to brands Digital advertising not effective due to ad clutter

25% ad block usage in Germany Ad Fraud

Viewability Autoplay Quality Ad Clutter Ad Blocker

Sources: Integral Ad Science, “Bericht zur Mediaqualität 2015“; Adobe AdBlocking Report August 2015.

(45)

| Page 45

| May 3, 2016 | | Page 45

| May 3, 2016 |

Our digital quality management suite

ProSiebenSat.1 digital quality management suite

Focus on exclusive BigAds forms to avoid ad clutterand reduction of ad intensity

Ad Intensity Steering

Proprietaryanti-ad blockersolution

Portfolio screening of all managed

inventory to prevent robot traffic

SevenOneMedia

Anti Ad Blocker Integral Ad Science

(46)

| Page 46

| May 3, 2016 | | Page 46

| May 3, 2016 | Source: ZAW (2010-2014); ProSiebenSat.1 estimate, 2015E, 2016E.

Sports effects with limited impact on annual TV ad spend …

German net TV ad market growth

4.0

2.2 1.4

0.7

2013 2014 2015E

2012 2016E

2011

+2-3%

Net TV ad market growth rate

+

%

% +2-3%

(47)

| Page 47

| May 3, 2016 | | Page 47

| May 3, 2016 | Source: ProSiebenSat.1 estimate, 2016E.

… however deviating seasonality within sports year

2016E German net TV ad market growth

• Q1 2016 stronger due to earlier Easter

• Sports events to trigger pull-forward effects to April and May

• June likely to be weaker, H1 performance therefore strongly depends on June

• H2 not significantly

affected by sports events Market comments Estimated net TV ad market growth rate

[in %]

Ø

Q1 Q2 Q3 Q4

(48)

| Page 48

| May 3, 2016 | | Page 48

| May 3, 2016 |

Solid single-digit net TV ad market growth forecast

Source: Warc International Ad Forecast 2015/2016 (Dec. 2015); ZenithOptimedia Advertising Expenditure Forecasts (Mar. 2016); Magna Global (Broadcast TV, Dec. 2015); SevenOne Media own estimate.

+2-3%

German net TV ad market estimates 2016

+4.3% +2.5%

ProSiebenSat.1 internal market estimate

+4.3%

(49)

| Page 49

| May 3, 2016 | | Page 49

| May 3, 2016 |

Sales outlook 2016

3 1 2

4

German net TV ad market growth of +2-3%

P7S1 to grow in line with positive net TV ad market

Further increase of CPTs

Continued increase of TV share in media mix

(50)

| Page 50

| February 25, 2016 |

May 3, 2016

Broadcasting German-speaking

Distribution

Thomas Ebeling

(51)

| Page 51

| May 3, 2016 | | Page 51

| May 3, 2016 |

Strong revenue growth continued

1 2 3 4 Broadcasting German-speaking / Distribution

External revenues [in EUR m]

+14%

Q1 2015

26 29

Q1 2016

(52)

| Page 52

| May 3, 2016 | | Page 52

| May 3, 2016 |

Dynamic increase of HD subscriptions in Q1 2016

Note: HD Free-to-air subscribers shown; paying subscriber figures as reported by platform partners (EoP; subject to subsequent adjustments by platform partners).

HD subscriber development [in m]

9.2

5.6 6.5 4.6

3.3 1.2

target CMD 2018 2016Q1

2014Q1

2013Q1 Q1

Q1 2015 2012

+0.9m

Q1 2015vs.

+17%

(53)

| Page 53

| May 3, 2016 | | Page 53

| May 3, 2016 |

1) Complementary to cable, satellite, terrestrial and IPTV distribution; 2) Deep tariff integration on Unitymedia and TeleColumbus; 3) Astra Monitor report 2015 published 03/2016 (adjusted data base on new official population statistics), Telekom publications and P7S1 assumptions; 4) Unique users per month, company publications, AGOF figures and P7S1 assumptions; 5) SNL Kagan and P7S1 assumptions; 6) Digitalisierungsbericht, SNL Kagan and P7S1 assumptions.

Continued strong Distribution presence

Cable Satellite IPTV Terrestrial

Mobile¹⁾ Phones/

tablets Connected

Smart TVs Streaming

devices

16.5m HH³⁾ (42% of total HH)

17.9m HH³⁾ (46% of total HH)

2.6m HH³⁾ (7% of total HH)

1.9m HH³⁾ (5% to total HH)

>4m unique users⁴⁾

Reach

>70m devices⁵⁾

>10m devices⁶⁾

>2m devices⁶⁾

• Profitable long- term deals

• Addressing all linear and non- linear TV for content consumption

• Strong presence for reach and ad-revenue monetization



2)

FTA via platformsFTA via P7S1 app (live and/or catch-up) and mobile aggregator Maxdome placement

(54)

| Page 54

| February 25, 2016 |

May 3, 2016

Digital & Adjacent

Thomas Ebeling

(55)

| Page 55

| May 3, 2016 | | Page 55

| May 3, 2016 |

Market position

1) Nordics; 2) Studio71 #1 MCN DE, top 5 globally; 3) Yieldlab #1 Premium SSP in DACH;

4) SVoD market DE, according to forsa; 5) Mobile and PC games publishers Europe, excluding direct publishing by developers.

Our market leading D&A portfolio

1 2 3 4 Digital & Adjacent

Digital Entertainment

Games

Top3⁵⁾

PayVoD

Top3⁴⁾

AdVoD

Ventures & Commerce

Travel

#1

Top5

Top 5

#1

Ventures

Leading German VC investor (M4R/E)

#1

Adjacent

Music, Artist Mgmt., Licensing

#5

A C

B

Beauty & Accessories

Top5

#2

Online Comparison

Top 5

Q1 revenue split

#2 #1²⁾ #1

#1 ^Top₃ #1³⁾ #1¹⁾

36%

4%

60%

#1

Sports

New

(56)

| Page 56

| May 3, 2016 | | Page 56

| May 3, 2016 |

2016 starts with significant y-o-y revenue growth …

External revenues Entity rec. EBITDA

[in EUR m] [in EUR m]

242

138

Q1 2016 Q1 2015

35 27

Q1 2016 Q1 2015

+75% +29%

(57)

| Page 57

| May 3, 2016 | | Page 57

| May 3, 2016 |

… driven by strong performance of Commerce and Entertainment

Digital

Entertainment Ventures & Adjacent Commerce

Revenues

[Q1 2016]

86m

EUR

146m

^EUR

9m

^EUR

Revenue growth (%)

[Q1 2016 vs. Q1 2015]

+66% +110% -44%

Revenue growth

[Q1 2016 vs. Q1 2015]

34m

EUR

76m

^EUR

-7m

^EUR

(58)

| Page 58

| May 3, 2016 | | Page 58

| May 3, 2016 | 1 2 3 4 Digital & Adjacent

A

Online video advertising market Germany¹⁾

in premium

#1

video ad market¹⁾

[in EUR m]

124 88

Q1 2015 Q1 2016

1) Source: Nielsen Media Research, gross in-stream video ad market revenues Germany (without Google/YouTube, Amazon, Facebook and long-tail ad networks 2) Source: AGOF Internet Facts; Jan 2016 LTM vs. Jan 2015 LTM, 10+

3) Source: Internal data Q1 2016 vs. PY (Studio71 GER only, excl. Studio71 US).

+37%

video unique users²⁾

+88%

video views in Germany³⁾

Channel websites

Multi-channel network +40%

We maintain #1 position in the German premium video ad market

(59)

| Page 59

| May 3, 2016 | | Page 59

| May 3, 2016 |

Studio71 is a leading MCN in Germany and globally …

1) Source: ComScore YouTube Partners Report Mar 2016 (content views, desktop only, incl. music MCNs, Maker and Fullscreen not listed), Studio71 GER and Studio71 US combined; 2) Source: monthly video views retrieved from company websites, based on SocialBlade “Top 100 YouTube Networks” report (incl. music MCNs).

A

#1 MCN in Germany

ComScore MCN Ranking, March 2016¹⁾

Global

#5 MCN²⁾

#1

Warner Music Broadband

TV TubeOne

Networks Studio71 VEVO

(60)

| Page 60

| May 3, 2016 | | Page 60

| May 3, 2016 |

>1,200 Channels

>25,200 Channels

>15,900 Channels

>51,400 Channels

>136,400 Channels

0m 1m 2m 3m

Over 3.2m VV/channel

… strongly growing with high reach throughout all channels

A

Strong growth of VV continued …

Studio71 global video views¹⁾ [in bn]

… with highest reach per channel²⁾

0.7 1.0 1.3 1.6 1.7 2.0 2.5 3.5

4.3

Mar Jun Sep Dec Mar Jun Sep Dec Mar

2014 2015 2016

1) Basis: before CDS acquisition pro forma incl. CDS; Source: YouTube CMS, own calculations; 2) Source:

monthly video views per company websites; number of channels per SocialBlade as of Mar 2016. Studio71 data per management. Analysis excl. music MCNs; 3) Source: Internal data (Mar 2016).

>400m

subscribers³⁾

| Page 60

(61)

| Page 61

| May 3, 2016 | | Page 61

| May 3, 2016 |

We continue to strengthen and expand our ad tech business

Demand Side

Platform Supply Side

Platform Ad server Video ad exchange

Advertisers / agencies

All “big four” agency groups are customers

of Smartstream.TV and/or Virtual Minds Majority of top AGOF publishers

use Virtual Minds technologies

Ongoing European roll-out and new investments

Sales houses / publishers

A

(62)

| Page 62

| May 3, 2016 | | Page 62

| May 3, 2016 |

maxdome continues to grow with new distribution platforms …

1) End of period Q1 2016 vs. end of period Q1 2015; 2) Q1 2016 vs. Q1 2015; 3) Average of period Q1 2016 vs. average of period Q1 2015; 4) Integration in new Entertain service (Telekom).

A

+83%

subscribersSVoD ¹⁾

+32%

Total user base³⁾

+55%

Total video views²⁾

Top 3 market position New distribution platforms

2.5m

potential households⁴⁾

1.4m

potential households

(63)

| Page 63

| May 3, 2016 | | Page 63

| May 3, 2016 |

… now improving user experience with curated recommendations

New & unique customer proposition

Content discovery through curated recommendations

maxdome as trusted film expert

A

New Web

OTT Mobile

(64)

| Page 64

| May 3, 2016 | | Page 64

| May 3, 2016 |

Strong success of Starwatch Entertainment music artists

B

By label releases New

11 Echo awards

(out of 39 nominations)

7 top 10 chart entries

By label and music cooperation artists

(65)

| Page 65

| May 3, 2016 | | Page 65

| May 3, 2016 | Note: Traffic statistics for ran.de and sportdeutschland.tv refer to Jan 2016; SAM Sports and ran FIGHTING are fully owned assets; Sportdeutschland.tv is a majority investment; eversport is a minority investment; National Football League (NFL) and all logos listed under sports products refer to acquired rights.

B

We have launched 7Sports to build a leading sports ecosystem

Reached new record levels:

70m Page Impressions p.m.

Significantly increased monthly traffic:3m video views p.m.

Signed two further German national soccer team players

Strong synergy creation

360° monetization of sports rights Great achievements on our sports

platforms … … enabled us to build a dedicated sports cluster

Digitization of sports consumption TV market share of 50% at

NFL Super Bowl 50

Sports products Athlete

mgmt. Sports events Digital

sports

NEW

(66)

| Page 66

| May 3, 2016 | | Page 66

| May 3, 2016 |

Outstanding etraveli performance is driving our Travel vertical

1) Business outside Nordics.

C

y-o-y revenue

+84%

growth

+85%

growth of international

business¹⁾