Post on 04-Sep-2020
2010Thomas Ebeling, CEO
Axel Salzmann, CFO
November 11, 2010
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At a glanceThomas Ebeling, CEO
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We are on a growth course in almost all markets
We continued our earnings growth due to higher revenues and sustained cost management
Highlights Q3 2010
1.2.
ü
ü
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12.0%
Significant earnings growth in Q3 2010 at almost stable operating costs
Recurring EBITDAEUR 154.9m
Operating costsEUR 475.0m
Group revenuesEUR 626.9m
64.3%
1.2%
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Revenue growth across all segmentscontinued in Q3 2010
Free TV German-speakingEUR 387.1m 14.8%
DiversificationEUR 83.1m 13.8%
Free TV InternationalEUR 156.7m 5.0%
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OperationsThomas Ebeling, CEO
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Switzerland 17.3%
Germany: solid performance in challenging months of Olympics and Soccer World Cup
TV audience shares in GermanyQ1-Q3 2010 vs Q1-Q3 2009, in percent
Basis: All German TV households (Germany + EU), 24 hours (Mon-Sun) 14-49 years. Source: AGF/GfK Fernsehforschung / TV Scope / SevenOne Media Audience Research. A+CH: 24 hours. *Switzerland: The audience shares until December 31, 2009 are based on the "substitution method"; starting January 1, 2010 all data refer to the international used "daily emphasis". Because of additional adjustments in the Telecontrol-Panel, the shares are not comparable to former years according to Publica Data AG. ** Excl. N24.
Austria 19.0% 1.8 pt *1.0pt
28.6 28.5
10.8 10.7 11.7 11.6
6.1 6.2
ProSiebenSat.1 Group** SAT.1 ProSieben kabel eins
Effect of World Cup and Olympics on 2010 ratings:
-0.9%pt
29.4
Q1-Q3 2009 Q1-Q3 2010
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In percent
Q1-Q3 2009
Q1-Q3 2010
Ratings 2010 incl. WM
and Olympics effect
3.12.3 3.2
21.622.7 22.0
7.37.4 7.4
14.012.9 14.7
24.527.6 25.7
14.214.9 15.1
International: ratings performance impacted by Olympics and Soccer World Cup
Q1-Q3 2010 vs. Q1-Q3 2009. Figures refer to extended prime time audience shares. The Netherlands: SBS 6, NET 5, Veronica; target demographic 20-49 years / Belgium: VT4, VIJFtv; target demographic 15-44 years; Belgian figures refer to the region of Flanders / Hungary: TV2, since January 2010 FEM3; target demographic 18-49 years / Romania: Prima TV, Kiss TV; target demographic 15-44 years; Romanian figures are based on the urban population / Sweden: Kanal 5, Kanal 9; target demographic 15-44 years / Denmark: Kanal 4, Kanal 5, 6‘eren, The Voice; target demographic 15-50 years in commercial universe / Norway: TV Norge, FEM, The Voice; target demographic 12-44 years / Finland: The Voice/TV Viisi; target demographic 15-44 years.
16.816.3 17.3
Netherlands Belgium
Norway Sweden
16.915.4 17.2
Denmark Finland
Hungary Romania
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Source: Nielsen Media Research. SevenOne Media incl. 9Live.
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1000
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8000
9000
Total TV ad market ProSiebenSat.1
Germany: sustained leading position in a growing TV market
Gross TV ad investmentsQ1-Q3 2010 vs Q1-Q3 2009, in EURm
+16.9%
+19.6%
Gross TV ad market share ProSiebenSat.1Q1-Q3 2010 vs Q1-Q3 2009, in percent
0
20
40
60
Q1-Q3 2009 Q1-Q3 2010
43.1
+1.0%pt
44.1
TV ad share of total gross ad market increased from 40.3% to 42.4%
6,235
7,288
2,6883,214
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Source: Nielsen Media Research.
0 500 1.000 1.500 2.000
Gross TV Advertising
Food
Cosmetics and Toiletries
Media and Publishing
Trade and Shipment
Motor Vehicles
Beverages
Business Services
Telecommunication
Finance
Pharmacy
All advertising categories are growing
Top gross TV advertising categories in GermanyQ1-Q3 2010 vs Q1-Q3 2009, in EURm
+16.9%
+8.6%
+14.1%
+18.3%
+30.5%
+5.4%
+12.0%
+51.8%
+12.4%
+13.0%
+6.3%
7,288
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Users aged 14+: 49.68m = 70.5% of all Germans. Source: AGOF internet facts 2010-II, Nielsen Media Research. *Total market.
ProSiebenSat.1 has improved its position as one of the leading online marketers in a growing market
Top online marketers in GermanyUnique Users in million per month, users aged 14+
22.02
31.53
30.03
26.59
25.79
25.09
24.47
23.47
22.80
22.06
InteractiveMedia CCSP
Tomorrow Focus
SevenOne Media
United Internet Media
IP Deutschland
eBay Advertising Group
Yahoo! Deutschland
Axel Springer Media Impact
Ströer Interactive
Microsoft Advertising
Gross online ad investmentsQ1-Q3 2010 vs Q1-Q3 2009, in EURm*
1,575
1,177
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500
1000
1500
2000
Q3 2009 Q3 2010
+33.8%
+1#3
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Share of advertising refers to net figures, own estimates based on available market data. Revenues: Cash advertising revenues include: spotsales + sponsoring/billboarding + advertising funded programming.
TV ad marketQ1-Q3 2010 vs Q1-Q3 2009, in percent
International: revenue growth in all markets except CEE
Share of advertisingperformance
RevenuePerformance
-11
-3
18
98895
-20
-10
0
10
20
BE NL DK FI NO SE HU RO
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FinancialsAxel Salzmann, CFO
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*Recurring EBITDA: EBITDA before non-recurring (exceptional) items.
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Q3 2009 Q3 2010
Q3 2010: dynamic earnings growth driven by higher revenues
RevenuesIn EURm
Recurring EBITDA*In EURm
0
200
400
600
800
Q3 2009 Q3 2010
559.5
626.9
94.3
154.9
+64.3%
Recurring EBITDA margin increased by 7.8%pts to 24.7%
+12.0%
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*Recurring cost (operating costs): Total costs excl. D&A and non-recurring expenses.
0
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400
600
Q3 2009 Q3 2010
Q3 2010: operating costs almost stable
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50
Q3 2009 Q3 2010
0
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30
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Q3 2009 Q3 2010
Operating costs*In EURm
Non-recurringexpensesIn EURm
Depreciationand amortizationIn EURm
32.3
10.6
32.832.5
475.0469.3
+1.2%
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400
Q3 2009 Q3 2010
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180
Q3 2009 Q3 2010
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25
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75
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Q3 2009 Q3 2010
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Q3 2009 Q3 20100
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Q3 2009 Q3 2010
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Q3 2009 Q3 2010
Q3 2010: profitable growth across all segments
Recurring EBITDA, in EURm Recurring EBITDA, in EURmRecurring EBITDA, in EURm
Free TV International External revenues, in EURm
DiversificationExternal revenues, in EURm
Free TV German-speaking External revenues, in EURm
337.3387.1
51.8
104.0
18.515.5
32.427.0
83.173.0
156.7149.2
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*Total costs excl. D&A and non-recurring expenses. **Recurring EBITDA: EBITDA before non-recurring (exceptional) items.
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Q1-Q3 2009 Q1-Q3 2010
RevenuesIn EURm
Recurring costs*In EURm
Recurring EBITDA**In EURm
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1200
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2400
Q1-Q3 2009 Q1-Q3 2010
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Q1-Q3 2009 Q1-Q3 2010
1,880.42,045.9 1,501.3 1,505.3
389.3
547.3+8.8% +0.3% +40.6%
Q1-Q3 2010: key financials at a glance
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Q1-Q3 2009 Q1-Q3 2010
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Q1-Q3 2009 Q1-Q3 2010
Q1-Q3 2010: key financials at a glance
Recurring EBITDA, in EURm Recurring EBITDA, in EURmRecurring EBITDA, in EURm
1,150.71,263.5
247.2
371.3
59.546.2
116.795.8
260.1241.6522.3488.1
Free TV International External revenues, in EURm
DiversificationExternal revenues, in EURm
Free TV German-speaking External revenues, in EURm
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Q1-Q3 2010: revenue split by segment and region
External revenues by segment In percent
External revenues by regionIn percent
German-speaking 69.4(Q1-Q3 2009: 68.7)
B/NL13.7(Q1-Q3 2009: 14.4)
Nordic 13.5(Q1-Q3 2009: 12.7)
CEE 3.4(Q1-Q3 2009: 4.2)
Diversification 12.7(Q1-Q3 2009: 12.8)
Free TV German-speaking61.8(Q1-Q3 2009: 61.2)
Free TV International25.5(Q1-Q3 2009: 26.0)
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Free TV revenues by quarter 2009-2010
Free TV German-speakingExternal revenue in-/decreasein percent vs prior year
Free TV International External revenue in-/decreasein percent vs prior year
-2.0
-6.8 -6.1
4.8
7.28.3
Q1 Q2 Q3 Q4 Q1 Q2 Q3
5.0
10.7
4.5
-6.5
-14.4-13.9-12.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3
14.8
2009 2010 2009 2010
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* Net debt/LTM recurring EBITDA. ** Thereof EUR 497.2m RCF. *** Term Loan (TLB/TLC) notional EUR 3.560bn net of EUR 30m finance costs.
Net financial debt and leverage improved
Favorable debt financing with
no imminent refinancing requirement:
• EUR 4.2bn senior secured credit facilities
• EUR 3.6bn term loans with bullet
repayment in July 2014/15
• EUR 600m revolving credit facility (maturity July 2014)
Net debt reduced to EUR 3.284bn
• Net debt down by EUR 10.8m vs. December 31, 2009,
improvement of EUR 250.6m vs. September 30, 2009
EUR 743.4m of cash on balance sheet
• EUR 70.9m of additional undrawn liquidity under the RCF
• December 31, 2009: EUR 737.4m cash on balance sheet
Leverage* improved to 3.8x (Q3 2009: 5.3x)
• LTM recurring EBITDA of EUR 854.5m
Total loans &borrowings
Liquidity Net debt
Total debt and net debtIn EURm, IFRS
4,028
3,284
744RCF/Other**EUR 498m
Term Loans***
EUR 3,530m
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Outlook & strategy updateThomas Ebeling, CEO
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At current prices, change vs. previous year in percent. Source: ZenithOptimedia: Advertising Expenditure October 2010 // WARC: July 2010.
Research institutes expect recovery ofTV advertising markets
6.1 3.9 1.3 3.0
12.0 10.8 11.35.1 8.5
0.4
-10.0-15
-5
5
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Germany Austria CH NL Belgium Sweden Norway Denmark Finland Hungary Romania
Net TV ad investments 2010ZenithOptimedia
3.5
-2.9
1.0
-9.8
6.1
2.51.4
-16
-12
-8
-4
0
4
8
2007 2008 2009 2010e 2011e
Zenith
WARC
German net TV ad market 2007-2011
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TV emerges stronger from economic downturn in 2009
Viewing time233 min
Sales volume4.65m TV sets
Favorite occupation76.7%
5.9%
18.1%
2.0%
All figures refer to German core market. Source: AGF/GfK-Fernsehforschung; TV Scope, Q1-Q3 2010 vs. Q1-Q3 2009. Note: Adjustments in the method of collecting data for 2010 figures. Sales volume (H1 2009 vs 2010): gfu / BVT / GfK. Favorite occupation: TdW 2010 III - 2009/III, 14+years.
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Source: Nielsen Media Research.
TV emerges stronger from economic downturn in 2009
Trade and shipmentFood
-11.2-0.2
5.727.0
-24.4
123.9
7.6
-0.3
7.126.9
11.4
101.2
Media split of relevant advertising categories in Germany on a gross basis Change Q1-Q3 2010 vs Q1-Q3 2009 in EURm
TV
Inte
rne
t
Pri
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Ra
dio
Cin
em
a
Ou
tdo
or
TV
Inte
rne
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Pri
nt
Ra
dio
Cin
em
a
Ou
tdo
or
Cosmetics and toiletries
3.4
-0.2
5.5
31.8
5.9
113.3
TV
Inte
rne
t
Pri
nt
Ra
dio
Cin
em
a
Ou
tdo
or
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We have strong brands & a potential to leverage ProSieben’s No.1 brand image beyond TV
Fashion and lifestyle
Education andscience
Entertainment and lifestyle
HD and Basic Pay TV
VoD services
Music
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1.Free TVAdvertising
High-efficiency, best-practice organization
New Media &Pay / Distribution
2. Music,Commerce &Ventures
3. Content production &Global sales
4.
Become more independent of advertising market
Our four pillar growth strategy
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. Strong performance in German core TV marketwith further upside potential1
SAT.1
ProSieben
kabel eins
sixx
Creative process
Complementary stations
Regaining past strength as family channel
#1 choice of modern media generation / exploring line-extensions (for new target groups)
Leveraging successful Group formats / more female programs
Becoming leading female station
Increasing top-rate
Minimizing cannibalization and volatility
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Extended prime time target demographic 12-44 years
. Further upside potential also in our international TV markets1
Norway
Belgium
Finland
Distribution
Turnaround continues / focus on local programs
Sustain #3 market position
Increasing carriage revenues across international markets/ multi-year deals with cable operators secured
FEM achieves a strong audience share of more than 3% two years
after launch (technical reach: ~30%) without cannibalization
MAX went on air on November 1st with market share of 3.4% and technical reach of 63%
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New Media & Pay / Distribution: our key growth initiatives2
TV.de
MyVideo
maxdome
Online sales
Transaction platforms
Games
HD
Strong own portals / premium content
No.1 ad-financed web TV portal / 400+ channels
No.1 video-on-demand platform with 35,000 titles
No.1 video-advertising marketer
Launch of eCommerce platforms
Capitalizing growth of online gaming
Push HD TV / Launch new channels
.
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Live events
Main business initiatives expanding music, commerce & ventures
Music
Business Initiative Current examples
•Increase distribution deals (+50% in 2014)
•Increase label deals
(+200% in 2014)
Joe Cocker
Kim Wilde
Artistsmanagement
•Expand artist management (tma)
•Launch digital music streaming platform
Michael Mittermaier
Digital Music
•Expand live entertainment (create own events, cooperate with stand-alone events)
Starlight Express
3.
Sister Act
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Current examples
International Distribution
Development
Goals
•Create a Red Arrow ownedand controlled content pipeline
Production
•Expand SevenOneInternational´s sales catalog
Red Arrow aims to build up a leading global content house 4
•“Benidorm Bastards”sold to more than 20 countries
•“My Man Can”sold to about60 countries including China
•Omri Marcus(Worldwide Rights)
.
•Sultan Sushi Belgium(März) and Holland (June)
•Kinetic Content in USA (Sep)
•Australian Granada Media (Sep)
•Snowman Productions forNordic region (Okt)
•Create adequate production scale and generate additional revenues through 3rd-party business
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Key Messages 2010 and outlook 2011
1.2.
3. Dynamicgrowth withnew revenueinitiatives
4.
Positive economictrends in main markets
Attractivecontentpipelinedeveloping
Good audienceshareperformance
Continuedefficient costmanagement
5.
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This presentation contains “forward looking statements”regarding ProSiebenSat.1 Media AG (“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, express 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.
Disclaimer
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ProSiebenSat.1 Media AGCorporate OfficeMedienallee 7D-85774 UnterföhringTel. +49/89/9507-1151www.ProSiebenSat1.com