Q Press Presentation

Transcription

1 May 3, 2016 Q Press Presentation February 25, 2016 Page 1

2 May 3, 2016 Q At a Glance Thomas Ebeling Chief Executive Officer February 25, 2016 Page 2

3 Q At a Glance Key financials in Q [Q vs. Q1 2015; in EUR m] Revenues % Recurring EBITDA % Underlying net income 76 +8% May 3, 2016 Continuing operations Page 3

4 Q At a Glance Continued dynamic growth across all three business segments Revenue growth vs. Q Broadcasting German-speaking TV advertising Distribution +4% +14% +5% +EUR 23m Digital Entertainment Digital & Adjacent Ventures & Commerce Adjacent +66% +110% -44% Content Production & Global Sales +75% +38% +EUR 103m +EUR 17m May 3, 2016 Continuing operations, external revenues. Page 4

5 Q At a Glance 2018 Group revenue growth target Rec. EBITDA growth target [in EUR m, degree of achievement] revenue growth target [in EUR m, degree of achievement] 57% 4,206 57% 66% 51% 67% 3, ,095 1,926 2,175 2, ,535 2, Group rec. EBITDA Broadcasting Germanspeaking Digital & Adjacent Content Production & Global Sales ProSiebenSat.1 Group 2018 revenue growth target Rec. EBITDA margin profile 2018E +EUR 375m +EUR 1,200m +EUR 275m +EUR 1,850m >30% 15-20% 10% ~26.0% May 3, 2016 Degree of achievement 2012 Q (LTM) 2018 target Page 5

6 May 3, 2016 Q Financial Performance Review Dr. Gunnar Wiedenfels Chief Financial Officer February 25, 2016 Page 6

7 Q Financial Performance Review Q1 2016: dynamic revenue and recurring EBITDA increase Consolidated revenues [in EUR m] Recurring EBITDA [in EUR m] +22% +12% 1, Q Q Q Q Recurring EBITDA margin: 21% (-2%pts) May 3, 2016 Continuing operations Page 7

8 Q Financial Performance Review Q1 2016: Group revenue growth driven by all segments Key Group revenue growth drivers vs. PY [Q external revenues; growth rates in %] Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales EUR 493m, +5% EUR 242m, +75% EUR 63m, +38% TV advertising EUR 454m, +4% Digital Entertainment EUR 86m, +66% Ventures & Commerce EUR 146m, +110% Red Arrow EUR 63m, +38% Distribution EUR 29m, +14% Adjacent EUR 9m, -44% May 3, 2016 Continuing operations Page 8

9 Q Financial Performance Review Q1 2016: high single-digit underlying net income growth Financial result [in EUR m] Underlying net income [in EUR m] -17% +8% Q Q Q Q May 3, 2016 Continuing operations Page 9

10 Q Financial Performance Review Broadcasting German-speaking: continued solid revenue and recurring EBITDA improvement External revenues and recurring EBITDA [in EUR m] Q Q y-o-y Comments Ext. revenues % TV advertising % Distribution % 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. Rec. EBITDA % Rec. EBITDA increase almost in line with revenue growth. May 3, 2016 Continuing operations; recurring EBITDA on entity basis. Page 10

11 Q Financial Performance Review Digital & Adjacent: successful acquisitions drive segment revenue and recurring EBITDA External revenues and recurring EBITDA [in EUR m] Q Q y-o-y Comments Ext. revenues % Dynamic revenue growth in Digital Entertainment and Ventures & Commerce Digital Entertainment % primarily driven by consolidation effects as well as strong growth of maxdome. Ventures & Commerce % Adjacent affected by missing live events Adjacent % with former ProSieben host Stefan Raab and slow-down in Live Entertainment. Rec. EBITDA % Rec. EBITDA increase below revenue growth partly due to strong growth of lower-margin businesses. May 3, 2016 Continuing operations; recurring EBITDA on entity basis. Page 11

12 Q Financial Performance Review Content Production & Global Sales: continued double-digit revenue growth and notably improved profitability External revenues and recurring EBITDA [in EUR m] Q Q y-o-y Comments Ext. revenues % Total revenues % 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. Rec. EBITDA 5 1 >100% Solid rec. EBITDA margin well above prior year. May 3, 2016 Continuing operations; recurring EBITDA on entity basis. Page 12

13 Q Financial Performance Review Q1 2016: Group P&L improvement of all key metrics [in EUR m] Q Q Δ Revenues % Recurring EBITDA % Non-recurring items % Thereof M&A-related % EBITDA % Depreciation and amortization % Thereof PPA >+100% Operating result (EBIT) % Financial result % Thereof interest result % Earnings before tax (EBT) % Net income 1) % Underlying net income % May 3, 2016 Continuing operations; 1) Result for the period attributable to shareholders of ProSiebenSat.1 Media SE. Page 13

14 Q Financial Performance Review Financial leverage at the end of Q well inside target range of x net debt to recurring EBITDA Net debt [in EUR m] Net financial debt 2,500 2,000 1, x 2.1x M&A spend to a large extent covered by strong FCF generation from operating activites of >EUR 500m (LTM) 1, ,500 1, /03/ dividend payment M&A spend Other FCF before M&A 1) 31/03/2016 Financial leverage Financial leverage: Net debt/ltm rec. EBITDA (LTM rec. EBITDA of EUR 943m (previous year: EUR 860m) for continuing May 3, 2016 operations); 1) Mainly repayment of finance lease liabilities, dividend payments to non-controlling interests, payments for Page 14 businesses without change in control and financing costs.

15 Q Financial Performance Review Financial outlook for 2016 Group revenue growth (in %) >+10% Recurring EBITDA above prior year Underlying net income above prior year Financial leverage 1.5x 2.5x May 3, 2016 Page 15

16 May 3, 2016 Broadcasting German-speaking & Red Arrow Thomas Ebeling Chief Executive Officer February 25, 2016 Page 16

17 Broadcasting German-speaking & Red Arrow Germany with slower start while Austria performs strongly Audience share [in %] Germany (A 14-49) Q % Q % Austria (A 12-49) 23.5% 21.5% Switzerland (A 15-49) 18.2% 18.3% Basis for GER: All German TV households (GER+EU/German-speaking), A 14-49; Mon-Sun, 3-3 h; Source: AGF in May 3, 2016 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 Page 17 Oct 08, 2015 onwards); Source: Mediapulse TV-Panel. Source: AGTT / GfK: Fernsehforschung / Evogenius Reporting.

18 Broadcasting German-speaking & Red Arrow We see an upward trend from February onwards Audience share development Germany (A 14-49) [in %] January 2016 February 2016 March 2016 Basis: All German TV households (German-speaking), A 14-49, May 3, 2016 Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK / TV Scope / Page 18 ProSiebenSat.1 TV Deutschland.

19 Broadcasting German-speaking & Red Arrow and maintain our leading position in the German market Audience share (A 14-49) 1) Share of advertising 2) [Q1 2016; in %] [Q1 2016; in %] %pts %pts ) Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; RTL Mediengruppe w/o RTL II May 3, 2016 minority; Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland. Page 19 2) Gross values; Source: Nielsen Media Research / SevenOne Media, Sales Steering & Market Insights.

20 Broadcasting German-speaking & Red Arrow RA already contributes >20% of our new local commissions >20% of commissioned new launches come from Red Arrow 1) Examples of successful local in-house formats in German Free TV Audience share [A 14-49; in %] Kiss Bang Love Married At First Sight The Taste Up to 14.1% 2) Up to Up to 12.2% 3) 10.7% 3) Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; May 3, 2016 Page 20 1) Red Arrow Entertainment Group share of absolute number of new commissioned formats in 2015; 2) 2016; 3) 2015.

21 Broadcasting German-speaking & Red Arrow Broadcasting German-speaking & Red Arrow: outlook Focus on core channels ProSieben and Sat Launch new docu/factual channel to broaden portfolio Leverage TVD - Red Arrow relationship for content creation May 3, 2016 Page 21

22 May 3, 2016 Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer February 25, 2016 Page 22

23 Broadcasting German-speaking / Ad Market Performance Positive development in Q P7S1 German-speaking TV net advertising revenue growth of +4% Continued increase of TV share in media mix 1) Continued positive pricing development Growing number of addressable TV campaigns May 3, ) Source: Nielsen Media Research; Note: gross figures excl. YouTube and Facebook. Page 23

24 Broadcasting German-speaking / Ad Market Performance Advertising share in German-speaking markets ProSiebenSat.1 gross TV ad market share [in %] Germany Q % Q % Austria 36.3% 35.7% Switzerland 28.0% 29.0% May 3, 2016 Basis: Q1 2016; Source: Nielsen Media Research / Media Focus. Page 24

25 Broadcasting German-speaking / Ad Market Performance TV continues to benefit at the expense of other media Gross ad spendings, Germany [Q vs. Q1 2015; in % and %pts] Share of segment Change in media mix Total TV Online Radio Newspapers Magazines Outdoor, Cinema 100.0% 47.7% 10.4% 6.1% 16.6% 12.8% 6.4% -0.9%pts -0.4%pts -0.9%pts +1.5%pts +0.1%pts +0.6%pts Basis: Q1 2016; Source: Nielsen Media Research. Online excl. search, affiliate May 3, 2016 Page 25 and others not reporting their bookings to Nielsen (e.g. YouTube, Facebook).

26 Broadcasting German-speaking / Ad Market Performance Innovation leader in HbbTV-enabled addressable TV ad business SwitchIn XXL 20 campaigns 12 clients in Q1 Walt Disney Opel Lexus SwitchIn Canon Electronic Arts Tirol Spot overlay E WIE EINFACH Ferrero Eurowings May 3, 2016 Page 26

27 Broadcasting German-speaking / Ad Market Performance Solid single-digit net TV ad market growth forecast German net TV ad market estimates % +2.5% +4.3% +2-3% ProSiebenSat.1 internal market estimate Source: Warc International Ad Forecast 2015/2016 (Dec. 2015); ZenithOptimedia Advertising Expenditure Forecasts May 3, 2016 Page 27 (Mar. 2016); Magna Global (Broadcast TV, Dec. 2015); SevenOne Media own estimate.

28 May 3, 2016 Digital & Adjacent Thomas Ebeling Chief Executive Officer February 25, 2016 Page 28

29 Digital & Adjacent Our market leading D&A portfolio Market position Q1 revenue split A Digital Entertainment 36% C Ventures & Commerce 60% AdVoD Travel Top Top #1 3 #1 3) #1 #1 5 #1 1) #2 #1 2) #1 #1 Top 5 PayVoD Games Beauty & Accessories Online Comparison B Top 3 4) Adjacent Top 3 5) 4% #2 #2 Top 5 #1 #1 Ventures #1 Top 5 Music, Artist Mgmt., Licensing #5 New Sports #1 (M4R/E) Leading German VC investor 1) Nordics; 2) Studio71 #1 MCN DE, top 5 globally; 3) Yieldlab #1 Premium SSP in DACH; May 3, ) SVoD market DE, according to forsa; 5) Mobile and PC games publishers Europe, excluding Page 29 direct publishing by developers.

30 Digital & Adjacent A We maintain #1 position in the German premium video ad market Online video advertising market Germany 1) [in EUR m] # % 124 in premium video ad market 1) Channel websites +37% video unique users 2) Multi-channel network Q Q % video views in Germany 3) 1) Source: Nielsen Media Research, gross in-stream video ad market revenues Germany (without Google/YouTube, May 3, 2016 Amazon, Facebook and long-tail ad networks 2) Source: AGOF Internet Facts; Jan 2016 LTM vs. Jan 2015 LTM, 10+ Page 30 3) Source: Internal data Q vs. PY (Studio71 GER only, excl. Studio71 US).

31 Digital & Adjacent A Studio71 is a leading MCN in Germany and globally ComScore MCN Ranking, March ) #1 MCN in Germany #1 Global #5 MCN 2) Studio71 Warner Music Broadband TV VEVO TubeOne Networks 1) Source: ComScore YouTube Partners Report Mar 2016 (content views, desktop only, incl. music MCNs, Maker and May 3, 2016 Fullscreen not listed), Studio71 GER and Studio71 US combined; 2) Source: monthly video views retrieved from company Page 31 websites, based on SocialBlade Top 100 YouTube Networks report (incl. music MCNs).

32 Digital & Adjacent A maxdome continues to grow with new distribution platforms +83% +55% +32% 1.4m potential households SVoD subscribers 1) Total video views 2) Total user base 3) 2.5m potential households 4) Top 3 market position New distribution platforms 1) End of period Q vs. end of period Q1 2015; 2) Q vs. Q1 2015; 3) Average of period Q vs. average of May 3, 2016 Page 32 period Q1 2015; 4) Integration in new Entertain service (Telekom).

33 Digital & Adjacent C Outstanding etraveli performance is driving our Travel vertical +84% y-o-y revenue growth +85% growth of international business 1) May 3, ) Business outside Nordics. Page 33

34 Digital & Adjacent C Online Comparison pushed by Verivox record performance in Q1 Record performance of Verivox in Q1 +38% revenue growth 1) Market share gains across all new product categories 80% P7S1 stake May 3, ) Q vs. Q pro-forma revenues. Page 34

35 Digital & Adjacent Digital & Adjacent: outlook 1 Deliver double-digit revenue growth in FY Continue bolt-on M&A and evaluate partnerships to further drive growth 3 Further internationalize our digital verticals May 3, 2016 Page 35

36 May 3, 2016 Q Summary & Outlook Thomas Ebeling Chief Executive Officer February 25, 2016 Page 36

37 Q Outlook We confirm our positive full-year guidance Group revenue growth to exceed +10% Ad performance in line with positive net TV ad market Digital & Adjacent with double-digit revenue growth Recurring EBITDA and underlying net income above prior year May 3, 2016 Continuing operations Page 37

38 Disclaimer This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objectives of management and future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward-looking statements or other information stated herein, whether as a result of new information, future events or otherwise. May 3, 2016 Page 38

39 May 3, 2016 Page 39