Page 1
| July 30, 2015
July 30, 2015
IR Presentation
Q2 2015
Page 2
| July 30, 2015
4
1 Q2 2015 – At a Glance
2 Q2 2015 – Financial Performance Review
Summary & Outlook
Broadcasting German-speaking Digital & Adjacent
Content Production & Global Sales Q2 2015 – Operational Performance
3 3.1
3.3
3.2
Page 3
| July 30, 2015
Thomas Ebeling
Chief Executive Officer
At a Glance
Q2 2015
Page 4
| July 30, 2015
Key financials – Q2 2015
[Q2 2015 vs. Q2 2014, in EURm]
Revenues
Recurring EBITDA
Underlying net income
Continuing operations.
772.5
237.6
118.2
+11.8% ✔
+8.4% ✔
+9.3% ✔
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| July 30, 2015
Continued dynamic growth across all three business segments
Continuing operations.
Digital & Adjacent Broadcasting
German-speaking
Content Production
& Global Sales
TV Advertising +2.6%
Distribution +30.9%
Digital Entertainment +15.6%
Digital Commerce +32.6%
Adjacent +6.8%
Revenue growth
vs.
Q2 2014
+EUR 23m
(Q2 2015: EUR 535m)
+EUR 24m
(Q2 2015: EUR 54m)
+EUR 34m
(Q2 2015: EUR 184m)
+4.6% +23.0% +77.2%
Page 6
| July 30, 2015
Major operational highlights
✔
ProSiebenSat.1 with positive TV ad performance in H1
✔
Improved our digital competitiveness and growth profile with four transactions
✔
Investment into Ad Tech/programmatic advertising platform 1
✔
Best H1 TV ratings performance in the last ten years
1. Subject to closing of Virtual Minds and Smartstream acquisitions.
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Rationale
Market position
Revenue growth
5We have recently acquired four strategically important assets
Build leading advertising technology ecosystem
#1
premium display SSP3
High double-digit Take leading position
globally in MCN market
Top5
MCN globally2
High double-digit Shape new Online
Comparison vertical
#1
energy comparison portal1
High double-digit
Improve online video monetization
#1
multi-screen video ad exchange4
High double-digit
1. #1 energy comparison portal in Germany. 2. CDS: Together with Studio71 top 5 MCN globally. 3. #1 premium display Supply-Side-Platform (SSP) in Germany with Yieldlab. 4. #1 multi-screen video ad exchange in Germany. Note: Verivox, CDS, Virtual Minds and Smartstream deals signed in Q2 with envisaged closing in Q3. 5. P7S1 estimate FY2015
Page 8
| July 30, 2015
“String of pearls” M&A strategy continues
• Building European digital commerce champions
• Expanding our international digital entertainment position
Attractive shareholder value creation potential:
• Synergies with TV and/or existing digital verticals
• Strengthening our competitiveness
• Entering high potential digital markets
• Disciplined approach to valuation in line with our financial policy
• “String of pearls” of smaller and larger bolt-on acquisitions (alone or with partner)
• No transformative acquisition or merger currently
contemplated
Investment consideration Main approach
Focus on digital
Page 9
| July 30, 2015
Well on track to hit our 2018 Group revenue growth target
Continuing operations.
Degree of
achievement 61% 57% 150% 67%
300
600
100
1,000
182
343 150
674
0 200 400 600 800 1.000
Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales Group
CMD 2018 target Achievement by Q2 2015 [Achievement
by Q2 2015, in EURm]
42.0%
linear projection of CMD target
Page 10
| July 30, 2015
We update our 2015 segment revenue growth assumptions…
Continuing operations.
Digital & Adjacent Content Production
& Global Sales
1 Broadcasting 2 3
German-speaking
Revenues vs.
FY 2014
low single- digit growth
double-digit growth
low double-
digit growth
Page 11
| July 30, 2015
… and our positive outlook for 2015
Continuing operations.
Recurring EBITDA and underlying net income above prior year Digital & Adjacent with double-digit revenue growth
Ad performance at least in line with positive net TV ad market High-single digit Group revenue growth
✔
✔
✔
✔
Page 12
| July 30, 2015
Dr. Gunnar Wiedenfels Chief Financial Officer
Financial Performance Review
Q2/H1 2015
Page 13
| July 30, 2015 0
200 400 600 800
Q2 2015: continued double-digit revenue growth and strong recurring EBITDA improvement
0 100 200 300
237.6 219.1
+11.8%
Q2 2015 691.1
772.5
Q2 2014
Consolidated revenues [in EURm]
Recurring EBITDA [in EURm]
Q2 2015 Q2 2014
Recurring EBITDA margin:
30.8% (-0.9%pts)
Continuing operations.
+8.4%
Page 14
| July 30, 2015
Q2 2015: key revenue growth drivers of ProSiebenSat.1
Broadcasting German-speaking Key Group revenue growth drivers
[Q2 2015 external revenues, growth rates in percent]
Digital & Adjacent Content Production & Global Sales
Continuing operations.
TV advertising EUR 492.6m, +2.6%
Digital Entertainment EUR 66.2m, +15.6%
Red Arrow EUR 54.4m, +77.2%
Distribution EUR 28.5m, +30.9%
Digital Commerce EUR 98.3m, +32.6%
Adjacent EUR 19.0m, +6.8%
EUR 534.6m, +4.6% EUR 183.5m, +23.0% EUR 54.4m, +77.2%
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Q2 2015: underlying net income benefiting from operating and interest result improvement
Continuing operations.
-50 -25 0 25
-18.9 -22.3
-15.0%
Interest result [in EURm]
Q2 2015 Q2 2014
0 50 100 150
+9.3%
Q2 2015 118.2
Q2 2014 108.1
Underlying net income
[in EURm]
Page 16
| July 30, 2015 0
500 1.000 1.500
H1 2015: EUR 31m rec. EBITDA improvement already in H1
0 200 400 600
390.3 359.3
+12.2%
H1 2015 1,272.2
1,427.1
H1 2014
Consolidated revenues [in EURm]
Recurring EBITDA [in EURm]
H1 2015 H1 2014
Recurring EBITDA margin:
27.3% (-0.9%pts)
Continuing operations.
+8.6%
Page 17
| July 30, 2015
H1 2015: key revenue growth drivers of ProSiebenSat.1
Broadcasting German-speaking Key Group revenue growth drivers
[H1 2015 external revenues, growth rates in percent]
Digital & Adjacent Content Production & Global Sales
Continuing operations.
TV advertising EUR 929.3m, +3.4%
Digital Entertainment EUR 118.2m, +18.0%
Red Arrow EUR 100.0m, +76.5%
Distribution EUR 54.2m, +28.7%
Digital Commerce EUR 167.8m, +37.2%
Adjacent EUR 35.6m, +9.1%
EUR 1,005.4m, +4.7% EUR 321.7m, +26.1% EUR 100.0m, +76.5%
Page 18
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H1 2015: double-digit underlying net income growth rate above revenue and recurring EBITDA increase
Continuing operations.
-100 -50 0 50
-48.2 -53.1
-23.9%
Interest result [in EURm]
H1 2015 H1 2014
0 50 100 150 200
+14.8%
H1 2015 188.1
H1 2014 163.8
Underlying net income
[in EURm]
Page 19
| July 30, 2015
Broadcasting German-speaking: continued solid TV advertising revenue growth in H1 2015
Continuing operations.
External revenues and recurring EBITDA [in EURm]
Q2 2015
Q2
2014 y-o-y H1
2015
H1
2014 y-o-y Comments
Ext. revenues 534.6 511.2 +4.6% 1,005.4 960.4 4.7%
Solid TV ad revenue growth despite strong comparable figures - supported by positive macro and advertising environment. Continued dynamic distribution revenue growth.
TV advertising 492.6 480.1 +2.6% 929.3 899.0 3.4%
Distribution 28.5 21.8 +30.9% 54.2 42.1 28.7%
Rec. EBITDA 196.9 188.4 +4.5% 322.8 308.2 4.7% Maintained strong segment
rec. EBITDA margin
Page 20
| July 30, 2015
Digital & Adjacent: dynamic revenue and recurring EBITDA growth driven by all business units
External revenues and recurring EBITDA [in EURm]
Continuing operations.
Q2 2015
Q2
2014 y-o-y H1
2015
H1
2014 y-o-y Comments
Ext. revenues 183.5 149.2 +23.0% 321.7 255.1 +26.1% Revenue growth of Digital Entertainment driven by Ad and Pay VoD business.
Growth of Digital Commerce based on organic growth of all assets as well as positive consolidation effects.
Digital Entert. 66.2 57.2 +15.6% 118.2 100.1 +18.0%
Dig. Commerce 98.3 74.1 +32.6% 167.8 122.3 +37.2%
Adjacent 19.0 17.8 +6.8% 35.6 32.7 +9.1%
Rec. EBITDA 37.5 30.8 +21.8% 64.3 54.6 +17.8% Maintained recurring EBITDA
margin of c. 20%
Page 21
| July 30, 2015
Content Production & Global Sales: revenue growth mainly driven by US production business
Continuing operations.
External revenues and recurring EBITDA [in EURm]
Q2 2015
Q2
2014 y-o-y H1
2015
H1
2014 y-o-y Comments
Ext. revenues 54.4 30.7 +77.2% 100.0 56.7 76.5%
Strong organic revenue growth driven by US production business, global sales success of “BOSCH”
and “100 Code” as well as appreciation of US dollar vs.
Euro.
Total revenues 68.0 39.2 +73.6% 123.6 75.7 63.3%
Rec. EBITDA 4.0 1.3 >100% 4.7 -1.2 >100% Further improvement of
segment profitability
Page 22
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Q2/H1 2015: Group P&L – improvement of all key metrics
Continuing operations.
1. Result for the period attributable to shareholders of P7S1 Media SE.
.
[in EURm] Q2 2015 Q2 2014 Δ H1 2015 H1 2014 Δ
Revenues 772.5 691.1 +11.8% 1,427.1 1,272.2 +12.2%
Recurring EBITDA 237.6 219.1 +8.4% 390.3 359.3 +8.6%
Non-recurring items -12.1 -10.4 +16.0% -18.9 -14.7 +28.7%
EBITDA 225.5 208.7 +8.0% 371.4 344.6 +7.8%
Depreciation and amortization -32.8 -31.3 +5.0% -61.5 -57.3 +7.5%
Operating result (EBIT) 192.7 177.5 +8.6% 309.9 287.3 +7.8%
Financial result -19.8 -44.2 -55.1% -48.2 -82.5 -41.5%
Thereof interest result -18.9 -22.3 -15.0% -40.4 -53.1 -23.9%
Earnings before tax (EBT) 172.9 133.3 +29.7% 261.6 204.9 +27.7%
Net income 1 118.0 89.4 +32.0% 179.0 138.4 +29.4%
Underlying net income 118.2 108.1 +9.3% 188.1 163.8 +14.8%
Page 23
| July 30, 2015
Net debt [in EURm]
1,824
11,782
42
0 500 1.000 1.500 2.000
H1 2015: reduced net debt and financial leverage despite increased dividend payment
Financial leverage: Net debt/LTM recurring EBITDA (LTM recurring EBITDA of EUR 878.3m (previous year: EUR 812.4m) for continuing operations).
1. After reclassification of cash and cash equivalents of Eastern European operations.
06/30/2014 Change in net debt
06/30/2015
Financial leverage at 2.0x as of June 30,
2015 vs. 2.2x as of June 30, 2014
Net financial debt
LTM recurring EBITDA EUR 878.3m
(previous year EUR 812.4m)
Page 24
| July 30, 2015
Financial targets for 2015
Continuing operations.
Financial leverage
Underlying net income Recurring EBITDA
Group revenue growth high-single digit
above prior year
above prior year
1.5x – 2.5x
Page 25
| July 30, 2015
Thomas Ebeling
Chief Executive Officer
TV Performance
German-speaking
Page 26
| July 30, 2015
Strong viewer share growth across German-speaking markets
Basis for GER: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full day 3-3h. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland. Basis for CH: D-CH, A 15-49; Mon-Sun, full day.
Source: Mediapulse TV-Panel. Basis for A: A12-49; Mon-Sun, full day 3-3h, P7 MAXX Austria and S1 Gold Austria (both from Jul 15, 2014, onward). Source: AGTT / GfK: Fernsehforschung / Evogenius Reporting.
Q2 2014 Q2 2015
Germany 27.5% 29.8%
Austria 22.0% 23.3%
Switzerland 16.2% 19.0%
1. Relatively low ratings due to FIFA Soccer World Cup during the period of June 12-30, 2014 (estimated rating in Germany w/o World Cup: 29.1%)
Q2 2014 1
Page 27
| July 30, 2015
Focus topics for 2015 well on track
3
1 Increase audience share
2 Build share in female target groups
Leverage digital to drive viewer loyalty
Best H1 performance in the last ten years with high lead over key competitor
>3%pts rating increase in female target group (F 14-49) over Q2 2014
~50% usage increase of digital TV offerings and
#1 TV company in German social media
Page 28
| July 30, 2015
Audience shares (A14-49) [Full day; in percent]
Best H1 performance in the last ten years…
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full day 3-3h; P7S1 w/o N24 & w/o 9live, sixx from Feb 1, 2011 onward, SAT.1 Gold from Jan 17, 2013 onward, ProSieben MAXX from Sep 3, 2013 onward. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.
28.2 28.0
27.7
28.4 28.4 28.3 28.1
27.2
28.0
29.3
H1/06 H1/07 H1/08 H1/09 H1/10 H1/11 H1/12 H1/13 H1/14 H1/15
23 24 25 26 27 28 29 30
1
Page 29
| July 30, 2015
…with high lead over key competitor in Q2 2015
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full day 3-3h; RTL Mediengruppe w/o RTL II, SAT.1 Gold from Jan 17, 2013 onward, ProSieben MAXX from Sep 3, 2013 onward. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.
Audience shares (A14-49) [Full day; in percent]
28.5
29.3
28.4
27.5
29.3 29.8
28.9
29.8
24.8 25.2
26.4
23.6 23.6 24.9 24.9
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
23 24 25 26 27 28 29 30 31
29.8
Δ 5.5 %pts
24.3
1
Page 30
| July 30, 2015
Strong ratings in female target group
Q2 2014 Q2 2015 27.9
31.0 +3.1%pts
2
Female target group (F 14-49)
[audience share in percent]
Q2 2014 Q2 2015
32.4 34.9
+2.5%pts
Young female viewers (F 14-29)
[audience share in percent]
Basis: All German TV households (Germany + EU); Mon-Sun, full day 3-3h Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.
Page 31
| July 30, 2015
Successfully leveraging digital synergies to drive viewer loyalty
3
#1 TV company in German social media
~50% usage increase of digital TV offerings
#1 TV fan page in Germany
~24 million fans
#1 TV format in Germany
~400k followers
#1 media channel in Germany
~3 million followers
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, ProSiebenSat.1 TV Deutschland.
Q2 2015 vs. Q2 2014 1
.de
.de
.de
.de
+49%
Unique visits
+24%
Page impressions
+61%
Video
views
Page 32
| July 30, 2015
Strong line-up for H2 2015
German fiction US series Entertainment
Zoo Mila
New tele- novela New
series
Einstein
Udo Honig
Event movie
Berlin eins
Event movie
Navy CIS
New season
Criminal Minds
New season
Gotham
New season
The Flash
New season
Prankenstein
New show
The Voice
New season
Josephine Klick
New season
Frauenherzen
New series
Under The Dome
New season
New series
Promi Big Brother
New season
Page 33
| July 30, 2015
Thomas Ebeling
Chief Executive Officer
Ad Market Performance
German-speaking
Page 34
| July 30, 2015
Positive market development in H1 2015
German-speaking TV advertising revenue growth of 3.4% y-o-y
Continued increase of TV share in media mix 1
Solid German net TV ad market growth in H1 of approx. 2.0% – 3.0%
Continued positive net pricing development
1. Source: Nielsen; gross figures excluding YouTube and Facebook.
✔
✔
✔
✔
Page 35
| July 30, 2015
Continued leading ad share position in Germany
Switzerland Austria
Germany
Q2 2014 Q2 2015
24.5%
44.9%
35.4%
28.2%
44.5%
37.4%
ProSiebenSat.1 gross TV advertising market share [in percent]
Q2: Apr-Jun | Source: Nielsen Media Research (Germany), Media Focus (Austria, Switzerland).
Page 36
| July 30, 2015
TV continues to benefit at the expense of other media
Gross ad spendings, Germany
[in percent and %pts; Q2 2015 vs. Q2 2014
Q2: Apr-Jun | Source: Nielsen Media Research. Online exclusive search, affiliate and others not reporting their bookings to Nielsen (e.g. Youtube, Facebook).
Outdoor, Cinema Magazines Newspaper Radio TV Total
Online
-0.8%pts -1.1%pts
-0.1%pts
+1.7%pts 100.0%
46.9%
11.5%
5.7%
15.7%
13.7%
6.6%
Share of segment Change in media mix
+0.4%pts
-0.2%pts
Page 37
| July 30, 2015
7 out of 10 biggest industries increased TV budgets
491 391 384 293 291 229 190 139 130 97 3.252
15.1%
12.0%
11.8%
9.0%
8.9%
7.0%
5.8%
4.3%
4.0%
3.0%
+10.3%
-2.1%
-2.7%
+30.7%
+26.6%
+11.7%
-18.4%
+1.9%
+7.2%
+6.4%
+4.6%pts -3.1%pts +2.1%pts +5.7%pts +5.5%pts +5.0%pts -5.2%pts +4.1%pts -1.5%pts +2.7%pts
100.0% +4.0% +1.7%pts
Gross TV ad spendings of top 10 TV industries, Germany [in EURm, percent and %pts; Q2 2015 vs. Q2 2014]
in EURm Share Δ Δ TV in media mix
126 46
-8 -11
69 61 24 -43
3 9 6
Q2: Apr-Jun | Source: Nielsen Media Research (excl. Media & Publishing and Other Advertising).
Detergents Pharmacy Finance Beverages Food
Business Services
Motor Vehicles Telecommunication Cosmetics & Toiletries Trade & Shipment
in EURm
Total
Page 38
| July 30, 2015
Continued CPT increases in H1
CPT = Cost Per Thousand. Adults 14-49, Mon-Sun, full day 3-3 h, 01.01.-30.06.2015
Base: all TV households in Germany (D+EU) / Source: AGF in cooperation with GfK / TV Scope / SevenOne Media / Pricing & Media Strategy.
3.8 3.5
8.6
10.9 11.2
Gross CPT growth H1 2015
[in percent vs. H1 2014]
Page 39
| July 30, 2015
Strong net CPT development since 2009
Net CPT development [Index: 2007=100]
80 90 100 110 120 130
2007 2008 2009 2010 2011 2012 2013 2014 2015
Estimate
Market
Basis: All TV-HH (D+EU), TA 1-30; SevenOne Media: SAT.1, ProSieben, kabel eins; IP: RTL, VOX.
Source: AGF/GfK, TV Scope, SevenOne Media, Pricing & Media Strategy, own calculations.
Page 40
| July 30, 2015
Approved by Federal Administrative Court
High demand in market for regional TV ads
First cases of regional TV advertising realized, but ban impending for 2016
First successful pilot cases set up in NRW, Hessen and BW
Utility providers Lotteries
Breweries Car dealers
Furniture dealers Retailers
Political ban in the broadcasting law impending for 2016
May: Bavaria; Q3 2015: all other
transmission areas of Kabel
Deutschland (all other regions)
Page 41
| July 30, 2015
P7S1 has several levers to address regional potential
Existing solution: cable spot overlay
National spots with regional discount HbbTV 1.0 non-spot products
HbbTV 2.0 spot overlay
(potential ban 2016)
IPTV spot overlay (cooperation req.)
Mobile live stream targeting (e.g., 7TV)
Sat.1 regional windows
1
3 4 5 6 7 2
Current Future
Reconfirming market potential
by 2018 at
EUR 50m
Page 42
| July 30, 2015
First addressable HbbTV campaign: Daimler switch-in
• Switch-in targeted on connected TV/
HbbTV for 1.5m AIs (gross CPM: 50)
• Further geo-targeting possibilities (German regions & metropolitan areas)
Display shown after switch to ProSieben, Sat.1, kabel eins or sixx
After click on Red Button: full-screen microsite opens
Switch-in:
• On connected TV sets via HbbTV (11m devices)
Campaign concept Full-screen product microsite
Page 43
| July 30, 2015
H1 growth rate with same dynamic as in 2014
Source: ProSiebenSat.1 estimate.
German net TV ad market growth
2015
[in percent]
• March 2015 benefitted from earlier Easter
• April 2015 negative due to Easter effect
• May 2015 soft - no World Cup soccer related pull- forward effects from June into May as in prior year
• June 2015 very strong as expected
Q1 Q2
2014 2015 2014 2015
H1
2014 2015
Page 44
| July 30, 2015
First three quarters of 2014 had a higher share than annual average for P7S1, leading to tougher comparables until Q3
Q1 2014 Q2 2014
ProSiebenSat.1 estimated net TV ad share vs. IP Germany, 2014 [deviation vs. average share in 2014]
Q3 2014 Q4 2014
Ø Q4 will drive
P7S1 2015
ad share
performance
Page 45
| July 30, 2015
Solid single-digit net TV ad market growth forecast
+2-3%
German net TV ad market estimates 2015
+2.7% +3.2%
Source: Warc International Ad Forecast July 2015, ZenithOptimedia Advertising Expenditure Forecasts June 2015, Magna Global Forecast June 2015, ProSiebenSat.1 estimate.
P7S1 internal market estimate
+3.4%
Page 46
| July 30, 2015
Sales outlook 2015
3 1 2
4
German net TV advertising market growth of 2-3%
P7S1 to grow at least in line with market
Net CPTs to further increase due to increased value of reach
Continued increase of TV share in media mix
Page 47
| July 30, 2015
Conrad Albert
Chief Legal, Distribution &
Regulatory Affairs Officer
Distribution
German-speaking
Page 48
| July 30, 2015
Dynamic growth of Q2 revenues and HD subscribers
1. Q2 2015 vs. Q2 2014
Note: HD Free-to-air subscribers shown; paying subscriber figures as reported by platform partners (EoP; subject to subsequent adjustments by platform partners); total of 5.7m
P7S1 distribution revenue growth 1
P7S1 HD subscriber growth 1
EUR +6.7m
+31%
+0.9m
+19%
Page 49
| July 30, 2015
HD deals closed in Q2: Deutsche Telekom and Sky
Sat.1 Gold HD included in Telekom HD package,
from August 2015 on
Deal extension with HD+:
distribution of HD product to
Sky satellite households
Page 50
| July 30, 2015
Continuous growth of mobile distribution
1. Pre-installed on all new devices sold since 2015; additionally integrated within app recommendation area for all TV devices sold since 2012; 2.Google play store (android TV) available on Smart TVs of Sony;
Philips and Sharp expected to launch android TV in H2 2015
• Mobile TV app with strong reach of 1.2m downloads
• On all Samsung TV devices
1• In Google play store
2for android TV
• On amazon fire TV sticks and kindle fire HD
•
• Strongest German EPG app
with 16m downloads
Page 51
| July 30, 2015
Dr. Christian Wegner
Chief Digital & Adjacent Officer
Page 52
| July 30, 2015
Q2 2015: D&A highlights
1. Ext. revenues respectively Entity rec. EBITDA Q2 2015 vs. Q2 2014.
Note: CDS, Verivox, Virtual Minds and Smartstream deals signed in Q2 with envisaged closing in Q3.
Delivered double-digit revenue and EBITDA growth 1 +23% / +22%
Established a footprint in the US MCN market with the acquisition of CDS CDS
Built the foundation for a programmatic ad tech stack Virtual Minds,
Smartstream.tv
Acquired Verivox in landmark deal to create our new Online Comparison vertical Verivox
Expanded the footprint of our Travel assets to Spain, France and Netherlands International
exports
Page 53
| July 30, 2015
Ext. revenues Rec. EBITDA
Double-digit growth in revenues and rec. EBITDA
[in EURm] [in EURm]
0 50 100
150 149.2
Q2 2014 Q2 2015 183.5
0 10 20 30 40
Q2 2015 Q2 2014
30.8
37.5
~20%
EBITDA margin 1
+23% +22%
1. Entity rec. EBITDA / Ext. revenues.
Page 54
| July 30, 2015
All D&A units contributed to our dynamic growth …
Revenues [Q2 2015]
Revenue growth [Q2 2015 vs.
Q2 2014]
Digital Entertainment
EUR
66.2m +16%
Adjacent
EUR
19.0m +7%
Digital Commerce
EUR
98.3m
+33%
Page 55
| July 30, 2015
Digital Entertainment Digital Commerce Adjacent
A B C
Ad VoD Pay VoD Games M4R/E 7Travel 7Commerce Music, Artist Mgmt.,
Live, Licensing
… with market leading positions in our seven D&A pillars
#4
Top #1 32
Q2 2015 revenue
split
36% 54% 10%
Market position
Beauty & Accessories
New asset
Top
33
Online Comparison Portals
Other assets
1. Studio71 is #1 MCN in Germany; CollectiveStudio71 is top 5 globally. 2. SVoD market Germany, according to GfK. 3. Mobile and PC games publishers in Europe, excluding direct publishing by developers, P7S1 estimates. Note: Verivox, Virtual Minds, Smartstream and CDS deals signed in Q2 with envisaged closing in Q3 2015.
#1
#1
#1
Top
5
#2
#1
#1
#1
#11
#1
Top
3
#2
#1
#3
Top
5
#1
#1
#2
#1
Page 56
| July 30, 2015
We entered the US MCN market with the acquisition of CDS
A
Top 5 Global Multi-Channel Networks
Global video views, June 2015
1#5
>1,300
Channels
220
Channels
>270m
Subscribers
27m
Subscribers
>2.0bn
Monthly video views
300m
Monthly video views
1. Source: Socialblade, excluding Music MCNs; last 30 days as of July 13th.
Note: CDS acquisition signed in Q2 with envisaged closing in Q3.
CS71 is our foundation for further global expansion
Top 5 Global Multi-Channel Networks
Global video views, June 2015
1Page 57
| July 30, 2015
In Germany, we strengthened our Studio71 market leadership
A
1. Source: Video views of top 5 German MCNs according to ComScore YouTube Partners Report, June 2015.
We increased the gap to our followers and now lead with +28% more video views …
Video views Germany, June 2015
1+28%
… and signed artists with >4m subscribers with increasing mainstream visibility
2.7m
LeFloid
0.4m
Dfashion
0.9m
uFone
Page 58
| July 30, 2015
Our online video platforms are strong and growing …
A
1. Channel websites growth in video unique users, AGOF internet facts April 2015 vs. April 2014; May and June data not available yet. 2. Mandates websites growth in unique users, AGOF internet facts April 2015 vs. April 2014; May and June data not available yet; only selection of mandates shown. 3. Top 3 entertainment app (average ranking in Google Play App Store in Q2 2015).
Channel websites and mandates
Mandates
+14%
unique users
27TV
Top 3
entertainment app
3putpat.tv
#1
in music video on mobile and
SmartTV
Channel websites
+81%
video unique users
1Selected
key assets
Page 59
| July 30, 2015
… securing our leading video ad market position in Germany
We maintain #1 position in the premium video ad market
The next promising ad market is about to take off: Mobile
We have already built a strong own app base in mobile with 7TV
#1
P7S1 position in premium video ad market
A
+50%
Nielsen mobile ad market growth
13.8m
7TV downloads
1. Source: Nielsen Media Research Q2 2015 vs. Q2 2014.
Page 60
| July 30, 2015
We now cover the programmatic advertising value chain
A
1. Signed in Q2 with envisaged closing in Q3; Active Agent, Yieldlab and Adition are subsidiaries of Virtual Minds. 2. Smartstream.tv has already been a minority investment of P7S1; acquisition of additional 55% signed in Q2 with envisaged closing in Q3. 3. Source: Magna Global; CAGR 2014-2018.
Programmatic advertising value chain
+46% growth
3of programmatic advertising market
Ad server
A d v er tise r
Demand Side Platform Exchange/
Marketplace Supply Side Platform
S ale s ho u se / P u b lis h er
51% 1
P7S1 stake in Virtual Minds
80% 2
P7S1 stake in
Smartstream.tv
Page 61
| July 30, 2015
maxdome continues to grow in Q2 2015
+79% +93% +44%
SVoD subscribers 1
Total video views 2
Total user base 3
A
1. End of period Q2 2015 vs. end of period Q2 2014. 2. Q2 2015 vs. Q2 2014. 3. Average of period Q2 2015 vs. average of period Q2 2014.
Photo credit: © Sony Pictures Television International. All rights reserved. Breaking Bad is part of the maxdome subscription.
Page 62
| July 30, 2015
Digital Commerce
Accelerator
Majorities (>50%) Minorities (<50%)
1B
Note: Investments based on straight equity or equity-like components by D&A Digital Commerce segment, incl. Accelerator; non-Commerce D&A assets (e.g., Deezer) not included in this overview. Verivox deal signed in Q2 with envisaged closing in Q3. 1. On a non-diluted basis (warrants and convertibles included in <50%). 2. Deals to increase existing shares not included. 3. Not including Verivox until closing.
We have a broad investment portfolio with >60 assets
4
new deals closed in
Q2 2015
2Travel
Beauty &
Accessories Online Comparison Other Assets
Selection
Selection
~50 assets 12 assets
3Page 63
| July 30, 2015
Verivox: Landmark deal shapes our Online Comparison vertical
B
Strong market positions in energy (Verivox) and mobile bundle deals (preis24.de)
Foundation to become market driver in further markets (e.g., car insurance, financial services) 80% stake in Verivox acquired for ~170m EUR 3 to build new Online Comparison Portals vertical
>1m
arranged contracts per year
80% 1
85% 2
P7S1 stake
1. Verivox acquisition signed in Q2 with envisaged closing in Q3. 2. Acquisition of additional 25% equity stake in preis24.de in Q2. 3. Additional variable purchase price component depending on 2015 operating profit of Verivox; this amounts to a maximum of EUR 40 million.
Page 64
| July 30, 2015
Our Travel vertical expands internationally
B
>160m
LTM revenues
1#1 #3
Top 5
#1 #2
Market position Germany
billiger-mietwagen launched in France as Carigami 2
tropo launched in the Netherlands wetter.com launched in Spain as tiempo.es
1. External revenues July 2014 - June 2015. 2. The existing service location-de-voiture has been relaunched with billiger-mietwagen logo and corporate identity and the brand name carigami.
#1
Page 65
| July 30, 2015
Dynamic growth of our Beauty & Accessories vertical
B
Market position Germany
#2
#1
Top
5
+139%
revenues
1Majority stake acquisitions of Flaconi and Amorelie closed
Amorelie launched France website supported by TV
campaign on TF1
1. Revenue growth Q2 2015 vs. Q2 2014. Amorelie and Flaconi fully consolidated in Q2 2015, Valmano consolidated starting Q3 2015.
Page 66
| July 30, 2015
moebel.de with outstanding performance
B
Q2 2015 with continuously strong revenue growth
Growth further driven by strong fit with TV advertising
Leading market position as
#1 meta search in online furniture
+73%
revenues
1+62%
visits
11. Growth Q2 2015 vs. Q2 2014. moebel.de revenues not consolidated in Q2 2014.
Page 67
| July 30, 2015
Mobile LTE tariffs and smartphone bundles
Online insurance reseller
Swedish online shop for premium fashion
We have a continuously strong M4R/E deal flow
B
SevenVentures revenues
130%
Our dynamic revenue growth … … is based on our strong deal flow
Q2 2015 Q2 2014
1. Total SevenVentures business (incl. international, Austria, Switzerland and legacy). Note: All shown deal examples are Media for Revenue deals.
Example
Example
Example
Page 68
| July 30, 2015
Starwatch position expanded with new sports initiatives
C
10 days
until Gold status
Starwatch with most successful 2015 album release in Germany (Santiano) …
… and expansion to sports with Boateng marketing deal 1
Winner of 2014 Football
World Cup
1. Deal includes marketing and transfer rights as well as international exploitation together with RocNation.
Photo credit: Electrola / Universal Music.
Page 69
| July 30, 2015
Digital & Adjacent – outlook
Deliver double-digit revenue growth in FY 2015
Build new digital verticals
Further internationalize with more imports and exports
1
2
3
Page 70
| July 30, 2015
Global Sales
Thomas Ebeling
Chief Executive Officer
Page 71
| July 30, 2015
Ext. revenues Rec. EBITDA
Continued growth in revenues and rec. EBITDA
56.7
H1 2014 H1 2015
100.0 4.7
H1 2015 -1.2
H1 2014 +77%
[in EURm] [in EURm]
Page 72
| July 30, 2015
Married at First Sight: our most successful reality show so far
#1 telecast ever on FYI in the US.
Season 3 and spin- offs in production.
#1 rated show in Australia.
Season 2 already commissioned.
Nearly doubled Channel 4’s average
in the UK.
Season 2 already commissioned.
30% above slot average in Germany.
Season 2 in
production.
Page 73
| July 30, 2015
Red Arrow formats travel internationally
Rights for
home-makeover format House Rules sold to SBS Netherlands
Drama format The Last Cop premiered with record
ratings in Japan
Seasons 1 and 2 of major crime series
Bosch
heading to SBS Australia
#1
slot winner on Nippon TV
Page 74
| July 30, 2015
Thomas Ebeling
Chief Executive Officer
Page 75
| July 30, 2015
We update our positive full-year guidance
Continuing operations.
