1. art and entertainment
2. movies and tv
3. television

Creating new growth
CMD 2014
Keynote – Thomas Ebeling
ProSiebenSat.1 Media AG | October 15, 2014
| October 15, 2014
Page 1
ProSiebenSat.1’s total shareholder return notably exceeded
performance of major indices in the past years
2.500%
2.000%
1.500%
1.000%
500%
0%
ProSiebenSat.1 (Total Return)
| October 15, 2014
Source: Bloomberg as of September 30, 2014
ProSiebenSat.1
Dax
Stoxx Media
Page 2
Strong revenue and earnings growth as well as substantial
net debt reduction since 2009
+8.0%
✔
Recurring EBITDA (CAGR 2009-2013)
+12.2%
✔
Recurring EBITDA margin (2013)
+30.3%
✔
Underlying net income (CAGR 2009-2013)
+36.0%
✔
1.85bn
✔
1.8x
✔
Revenues (CAGR 2009-2013)
Net debt reduction (2009-2013)
Financial leverage (12/31/2013)
| October 15, 2014
Note: CAGRs calculated on the basis of annual growth rates of continued operations at the time.
EUR
Page 3
ProSiebenSat.1 with first class dividend yield, top in class
margins and valuation in line with its peers
2014E
Key peers
25.8x
21.6x
9.7x 9.0x
EV/EBITDA
11.6x 10.2x
16.2x
14.3x
11.7x 9.5x
8.7x 8.4x
9.6x 7.8x
4.8x 4.5x
30% 29%
29% 30%
22% 23%
20%
15%
11% 12%
7.2%
3.9%
2.5% 2.8%
7.4x
16%
10% 12%
8%
4.9% 5.3%
4.5%
12%
6.6% 7.0%
5.1% 5.7%
Dividend yield
10.7x
24%
22% 22%
EBITDA margin
7.8%
2015E
2.4%
| October 15, 2014
Source: Bloomberg consensus estimates as of September 30, 2014; Dividend yields based on 2014/15 dividends to be paid in 2015/16
3.8%
3.6%
1.4%
5.2%
1.8%
Page 4
We have built a strong position in the German TV market …
Share of viewing
[Audience share, in percent]
Share of advertising
[Gross values, in percent]
30.9
36%
owned
28.4
24.6
100%
owned
44.4
32.3
50%
owned
100%
owned
2014 YTD
2014 YTD
| October 15, 2014
Basis: All German TV households (Germany + EU), A 14-49; Mon-Sun, full day 3-3h; 2014 YTD: January 1, 2014 – September 30, 2014 / SoA YTD: January 1, 2014 – September 28, 2014.
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Strategy & Operations / SoA: Nielsen Media Research / SevenOne Media, Sales Steering & Market Insights.
Page 5
…and leading positions in our digital key business units
D&A revenue split and activities
[H1 2014]
Digital Entertainment
Digital Commerce
#1
#1
Pay VoD
#1
#2
39.3%
47.9%
Ad VoD
#1
#2
#1
Top 5
#3
#2
Adjacent
+
#3
Online
Games
| October 15, 2014
Continuing operations. PayVoD market only considering SVoD.
12.8%
#4
Page 6
FDM
Key elements of ProSiebenSat.1’s equity story
Track record of multi-year
operational and financial
outperformance
Market-leading positions
in German-speaking
TV and online video
business
Solid growth profile and
attractive dividends
Growing core TV market
and focus on
dynamically developing
digital markets
Balanced growth strategy to
reach EUR 1bn revenue
growth by 2018 vs. 2012
| October 15, 2014
Page 7
Growth across all three business segments in H1 2014
1
Revenue
growth
vs.
H1 2013
Broadcasting
German-speaking
TV advertising
Distribution
+3.2%
+26.9%
Digital
Entertainment
Digital
Commerce
+29.1% +29.5%
3
Content Production
& Global Sales
Adjacent
-12.3%
+EUR 32.6m
+EUR 45.9m
+EUR 6.2m
+3.5%
+21.9%
+12.2%
| October 15, 2014
Continuing operations
2
Digital & Adjacent
Page 8
TV continues to dominate media consumption in Germany
Average daily usage in Germany
2013
CAGR
[in min] [2002-2013]
[in minutes, 14-49 years]
225
200
175
TV
usage
182
+0.3%
Online
78
+9%
23
+72%
150
125
100
w/o Online Video
75
50
Online Video
25
incl. TV-related content
0
2002
2004
2006
| October 15, 2014
2008
2010
2011
2012
2013
Page 9
Note: Representative survey on media usage, data refer to each year’s 2-week inquiry period (mostly in February). Online since 2008 without passive usage; Online Video before 2011: P7S1 estimate.
Source: SevenOne Media/forsa, Enigma GfK, mindline media
Variety of viewer motivations…
SVoD/TVoD1
Linear TV
Catch up
“Audiovisual insurance“,
US binging,
convenience, autonomy
and cost saving
Lean back/
watching with family
Basic Pay TV
Ad-free enrichment of
lean back experience
Ensure to stay tuned
UGC/SPC2
New content experience/
“snacking“, short format
driven
Page 10
| October 15, 2014
1 SVoD = Subscription Video on Demand; TVoD = Transactional Video on Demand
2 UGC = User Generated Content; SPC = Semi-Professional Content
… are covered well by us
Linear TV
SVoD/TVoD
#1
Catch up
1
#1
portfolio
#1
Basic Pay TV
3
channels
2
UGC/SPC
#2
3
Page 11
| October 15, 2014
1 maxdome is #1 SVoD player in Germany 2 MyVideo is #1 premium content video portal and #2 German video portal behind YouTube
Note: Excluding Premium Pay
3 Studio71 is #2 MCN Studio in Germany
Opportunities for development of new audiovisual products
Exploit cooperation with
platform provider
Catch up destination platform
Mega audiovisual app combining streaming, catch up, OTT VoD
Attractive SVoD/TVoD offerings
Thematic channels combining TV content, information, commerce
7TV app
maxdome
Smart channels, e.g., Tastyfy
Online basic pay offerings
Exploring
Affordable attractive unbundled single premium pay channels
Exploring
New tailored content experience
MCN Studio71
The medium is very much alive
| October 15, 2014
Page 12
TV also remains strong in US
People continue to
watch TV …
• TV viewing still dominant way
of media consumption
… mirrored in strong share of
TV ad spending
TV as share of total advertising
spend in US
• Even heaviest viewers of
internet video with TV set
viewing of 2hr 15min per
week1
+4.6%pts
48.7%
TV set viewing increases
in core market US despite
• US already in 2007
with highest TV ad
spend per capita
• Significant
technological change
• Strong market
fragmentation
44.1%
Internet ad has not
affected TV ad to same
extent as print
2007
| October 15, 2014
1 vs.1 hr 32 min internet video and 19 min smartphone video; adults aged 18-24; in Q4 2013
Source: Enders Analysis based on BARB/InfoSys+, Nielsen, AGF
2015E
Page 13
Germany clearly less vulnerable to disruption of linear TV than
US (1/2)
Pay TV
penetration1
Monthly spend per Pay
TV HH2
On-Demand TV
penetration3
US
84%
79
17%
ØUSD
Germany
17%
19
5%
ØEUR
Multi-screen video
penetration4
45%
29%
Connected TV
penetration5
46%
10%
Digital affinity
(e.g., music streaming6)
18%
5%
| October 15, 2014
Page 14
1 US: IHS 2014E; DE: VPRT 2 US,DE: IHS 2014E; ARPU; for Germany digital TV ARPU, excluding mandatory public licensing fee of 18€/month 3 US: GfK Over The Top TV 2014; DE: Digitalisierungsbericht 2014 4 Video consumption via non-TV set at
least once per month; US: eMarketer; DE: Digitalisierungsbericht 2014 5 Active connected TV sets; US: eMarketer; DE: Digitalisierungsbericht 2014 6 Music streaming revenue share 2014E; US,DE: PWC Global Entertainment Outlook 2014
Germany clearly less vulnerable to disruption of linear TV than
US (2/2)
Ad break intensity
Channel fragmentation
Content quality in
Free TV
Power of domestic
content and local hosts
Studio contracts
Language
Illegal viewing
No ad break regulations –
high intensity (15-20 min/h) and frequency
Highly regulated – low intensity (max 12 min/h)
and frequency
Basic TV package incl. >500 channels –
due to diversity of ethnical groups & interests
Less fragmented/strong lighthouse channels
– due to lower social diversity
High-quality & top sport content not in
basic TV service – Pay TV a ‘Must Have’
>50 high/good quality channels in FTA w/ top
US & sport content alongside private channels
Many creative, local authors and formats
Few local ‘Must See’ hosts – licensing of international content and formats on FTA channels
Broad syndication model
FTA biggest, supported by holdbacks
Native language
Dubbed version
Commonly used – especially streaming
Limited due to German language dubbing –
most illegal content only in English
Less impact through streaming on German ad-driven FTA market compared to US
| October 15, 2014
Page 15
iPlayer strongly influenced online video growth in UK
UK
Online video services
1
iPlayer, paving the way for long
form TV content online, and
enabling rapid growth of Netflix
(iPlayer delivering 2.2bn TV requests in
2013 (2% of total BBC viewing time))
Germany
Each broadcaster operating
own catch-up platform;
IPTV with low market share
Connected TV
penetration2
25%
10%
Pay TV
penetration3
54%
17%
Monthly spend per Pay
TV HH4
Digital affinity
(e.g., music streaming)5
ØEUR
58
14%
ØEUR 19
5%
| October 15, 2014
1 Enders analysis: Core TV and connectivity trends, October 9, 2014; 2 Active connected TV sets; HIS, Enders analysis 3 HIS 4 PWC Music Streaming: PWC Global Entertainment Outlook 2014 5. PWC
Page 16
Scandinavia with significantly higher affinity towards pay and
digital compared to Germany…
Scandinavia
Pay TV
penetration1
Monthly spend per Pay
TV HH2
88%
ØEUR
42
Germany
17%
ØEUR
19
On-Demand TV
penetration3
23%
5%
Connected TV
penetration4
26%
10%
Digital affinity
(e.g. music streaming5)
>60%
5%
| October 15, 2014
Page 17
1 SCANDICS: IHS via IP Television Key Facts 2014 (SWE 87%; FIN 83%; NOR 90%; DEN 92%), DE: VPRT; 2 SCANDICS PWC (SWE 33 EUR; FIN 33 EUR; NOR 67 EUR; DEN 41 EUR), DE: IHS 2014E; ARPU; for Germany digital TV ARPU, excluding mandatory public licensing fee of
18€/month
3 SWE (for SCANDICS): GlobalWebIndex via Statista, Video-on-Demand Penetration Q1 2014, DE: Digitalisierungsbericht 2014 4 SCANDICS: IHS via IP Television 2014 (SWE 23%; FIN 19%; NOR 33%; DEN 31%), DE: Digitalisierungsbericht 2014 ; 5 Music streaming
revenue share 2014E; SCANDICS, DE: PWC Global Entertainment Outlook 2014 (SWE 82%; FIN 39%; NOR 75%; DEN 46% )
… since Scandinavian TV characteristics also significantly
differ from Germany
Fragmented with respect to total population - strong intl’ and lighthouse channels
Less fragmented/strong lighthouse channels
– due to lower social diversity
Medium quality overall – High-quality
mainly in Primetime
>50 high/good quality channels in FTA w/ top
US & sport content alongside private channels
Power of domestic
content and local hosts
Local hosts very strong, less international
content available on FTA channels
Few local ‘Must See’ hosts – licensing of international content and formats on FTA channels
Studio contracts
Less FTA relevance, limited holdbacks
FTA biggest, supported by holdbacks
English version
Dubbed version
Commonly used –
especially streaming
Limited due to German language dubbing –
most illegal content only in English
Channel fragmentation
Content quality in
Free TV
Language
Illegal viewing
Less impact through streaming on German ad-driven FTA market compared to Scandinavia
| October 15, 2014
Page 18
Perceived SVoD threat with meaningful upside for P7S1
Meaningful upside in
revenues and profits
maxdome revenues
Growing
TV ad revenues
despite slowly declining linear TV
consumption
Linear television
Video on demand
2%
Increasing SVoD
penetration over time
2013
| October 15, 2014
Note: Illustrative chart; maxdome subscription fee at EUR 7.99 per month, incl. 19% VAT; exluding TVoD/EST revenues
high
future
Page 19
A
We are well prepared to compete for growing SVoD market
Pricing
Distribution
Content
Marketing
Product
• EUR 7.99 SVoD price for all devices
including HD
• EUR 7.99 – 11.99 based on video quality &
devices
• Distribution deals with leading TV, mobile,
broadband players & >90% OTT coverage
• Basic OTT placements
• Invested in new binge series
• Extended existing studio deals
• Exclusive series previews
• Many binge series included
• Focus on originals
• Deep library content
• Leverages P7S1 marketing power
• Ability to do branded entertainment
• Extensive German market knowledge
• High marketing budget
• Brand building stage
• New brand/platform launched in September
• New recommendation engine implemented
• Includes offline mode
• Scaling of platform investment
• Advanced content recommendation engine
• Online-streaming only
| October 15, 2014
Page 20
TV will remain strong in Germany
Technology, distribution, format and channel and viewing enhancement innovations will
support viewing time growth
Stronger protection vs. (digital) disrupters than other international markets
 Less Pay TV penetration
 Most STB unable to receive VoD
 Lower digital affinity
 Low household spend for Pay/FTA limiting cord cutting/shaving risk
 Dubbed versions preferred, less illegal online viewing
 Studio contracts with holdback rights
 High quality FTA
SVoD represents opportunity given maxdome’s strong competitive profile
| October 15, 2014
Page 21
Key structural trends supporting our growth
TV superiority over print for consumers and customers
Increased time spent on audiovisual content
Increased acceptance of consumers to pay for top content and technologies will drive HD and pay
Smart TV and mobile penetration growth will open up new ad, pay and commerce revenue streams
Increased digitalization will create ad income and additional digital commerce revenues
Less power for key distribution platforms due to emerging alternative digital platforms
Sound economic market conditions
| October 15, 2014
Page 22
TV market correlates with private consumption, which should
be positive in 2015
German net TV ad market and private consumption
[rate of change in percent]
15
3
10
2
5
1
0
0
-5
-1
-10
-2
-15
-3
dot.com crisis
and September 11
Net TV ad market
(left scale)
Net private
consumption
(right scale)
Financial crisis
| October 15, 2014
p=prognosis, Net Ad market (ZenithOptimedia: Advertising Expenditure Forecasts Sept 2014)
Sources: Destatis, ZAW, Zenith | SevenOne Media, Market Insights (DZ)
Page 23
Positive trend in disposable income and unemployment rate
expected to drive private consumption
Trend 2015
1.3
GDP,
rate of change in %
Private consumption,
1.2
0.4
0.1
0.7
0.8
0.8
2.0
1.8
2.0
2.8
6.8
6.9
6.7
6.8
2012
2013
2014E
2015E
1.4
rate of change in %
Disposible income of HH,
rate of change in %
Unemployment rate,
in %
(Joint Economic Forceast)
| October 15, 2014
GDP: price adjusted, chain-linked, Unemployment rate: Federal Employment Agency (BA) concept
Sources: Joint Economic Forecast Autumn 2014
Page 24
Three key growth strategies
1
TV – Digital
synergies
2
Innovations and new
business models
3
Smart de-risked
M&A
| October 15, 2014
Leverage TV and internet content, promotion and ad synergies and exploit
the convergence of TV and Digital Commerce and Entertainment
Gain competitive advantages through innovative business models
Smart M&A with/without financial/strategic partner to constantly optimize
portfolio to create synergies, to obtain scale, to capture leading market
positions, to grow dynamically & to ensure best in class margins
Page 25
9_84 7_84
1
We create key synergies on three levels
Lead Generation
Lead Generation
Monetization
of User
Traffic exchange
between clusters
Intra Digital Verticals
Traffic flow
within cluster
Up-Selling
Value creation through
advertising/scale/
convergence/artists
Inter Digital Verticals
Cross-Selling
Scale of
Content Cost
TV - Digital
Fashion
Advertising • Subscriptions • Transactions
| October 15, 2014
Page 26
1
TV – Digital synergies are best value drivers
TV – Cross-Country
Synergies
• No compelling
synergies just
based on TV
| October 15, 2014
TV – Production
Synergies
• Very limited
• Few convincing
examples
TV – Digital
Synergies
• Advertising
• Cross-Promo/
Customer Sales
• Content Synergies
• Production
• Convergence TV with
Digital Commerce
Page 27
1
TV - Digital core synergies drive our transformation…
Free content
>13,000 hours of exclusive local content, >50,000 hours US blockbuster content
Free TV advertising
>EUR 1bn of idle TV ad space available at no additional cost
Free cross-promo/
bundling power
Shared customer data, product bundle, TV/internet promotion power
Convergence TV w/
Digital Commerce
Enabled by Smart TV/Hbb TV/2nd screen/Online video advertising;
Apps to allow to “click” on content/Ads to shop digitally
TV/Video sales power
>500 ad customers (leverage salesforce, advertise relations, agency relations)
Entertainment
competences
ProSiebenSat.1 in TV for 30 years – we know our audience
Relationships in
distribution
Distribution platforms facing similar competition entry risk (US giants)
| October 15, 2014
Page 28
2
… and we create new business models and drive innovation
M4R/E Next Level
Digital Importer of Choice
2nd Screen/Hbb TV
Ad Tech
TV Ad Digital Enhancement Apps
Smart Channels
Mega Apps
| October 15, 2014
Page 29
2
Innovation map to support growth
Distribution,
Pay & HD
TV/Sales
• TV digital enhancement
portfolio
• Individual targeting/
regional/local ads
Digital
Entertainment
Digital
Commerce
• Online pay
• 7TV/2nd screens
• New verticals
• Affordable
premium
cooperations
• MCN/international
alliances
• International
expansion
• Monetization of
games
• Digital importer of
choice
• International
sourcing/
VC investments
• New ad customer
segments/regulatory attack
on ads on public channels
• (Ultra) HD
• Streaming,
digital distribution
• VOD bundles
• New channels/formats
• Digital/TV freesheets
• Entertainment
bundles
• Multi channel
catch-up platform
• Print attack
• Category mgmt.
• New mandates
• Premium pricing
• Ad break innovation
• Sales/HR/corporate budget
concepts
| October 15, 2014
• Smart channels
• New entertainment
segments
Adjacent
• Talent/Live/
Rights Mgmt.
• Digital music
business
models
Content
Production
• Format/
company/
rights
acquisition
• Incubator
cooperation/
accelerator
initiative
• Digital enabling
services
Page 30
3
M&A strategy evolution
Larger bolt-on, alone or with
financial/strategic sponsor
Bolt-on
Maximize value of portfolio, low
cash M4R/E and small bolt-on
Since 2010
Since 2013
From 2015
Stay within financial leverage target range of 1.5x-2.5x and continue dividend policy
| October 15, 2014
Page 31
3
M&A goals
Drive digital transformation through “Buy & Build” of digital clusters
Execute acquisitions to strengthen core business TV and to increase viewer share
Expand digital business model to attractive international markets
Scale to grow profitability
Execute minority investments and M4R/E to get new ad funds and
to participate in international value creation
Realize value through attractive disposals (active portfolio management)
| October 15, 2014
Page 32
Our strategy broadens its geographic and business scope
3
1
Digital/Broadcasting
German-speaking
powerhouse
Year of
completion
2016
2 Internationalization
of digital business
2018
Digital/Broadcasting
operator and smart
investor/partner
2020
Stay within financial leverage target range of 1.5x-2.5x and continue dividend policy
| October 15, 2014
Page 33
1
Building digital verticals by 2016
Investment logic
Our TV assets can be successfully leveraged,
providing a strong competitive position
Travel
Established
Beauty & Accessories
Revenue potential of >EUR 100m (per vertical)
and double-digit EBITDA margin possible
Home & Living
Growth markets with local edge, that are
difficult to enter for global digital players
Competitive technology available
Availability of complementary partners to
mitigate cash/inventory risk
| October 15, 2014
New/
Evolving
Fashion & Lifestyle
TV/Digital enhancement
Page 34
2
We are building a European Media Alliance to grow digital
business…
Internationalize M4R/E model
Create digital-equity value outside
Germany by leveraging our skills
Improve capability to offer “Pan European
deals" to US/international imports
Increase deal flow among media partners
- win-win-partnerships
Invest in successful business models
internationally
| October 15, 2014
Page 35
2
… and we expand our scouting network to grow “import deals”
Identify trends and
competitive intelligence
Expand M4R/E deal funnel
Identify investment targets
and partnership
opportunities
Close alignment with global VC/PE networks
| October 15, 2014
Page 36
2
We aim to become the “importer of choice”
We provide a unique launch pad for companies entering the
German/European market
Network &
Know How
Successful import deals
Online
Marketing
Creative
M4R/E+
Testimonials
TV Analytics
Operational
Services
| October 15, 2014
BI & Data
Further deals currently
under negotiation
Page 37
3
Selective VC investments and cooperations with financial
sponsors to support future growth
VC cooperations
Financial sponsor cooperations
• Increase M4R/E deal flow
• Facilitate meaningful larger deals
• Identify “the next big thing”
• Strengthen governance and portfolio
management
• Better assessment of M&A targets
• Financial returns
| October 15, 2014
• Improvement in value creation
and optionality
Page 38
3
M&A and portfolio considerations
Scaling partnerships/
mergers
• Online Games
Partnerships with
financial and/or strategic
sponsors
Explore cooperations with
digital affine TV/distribution
strategic partners
• Digital Commerce
verticals
• Focus on Central- and
Northern Europe
• New Business
• Explore other attractive
geographies
• MCN
• Content Production &
Global Sales
• National cooperations
related to Platforms & Pay
| October 15, 2014
Page 39
Well on track to hit 2015 revenue growth target…
[Achievement by H1 2014, in EURm]
2010-2015
Degree of
achievement
65.8%
84.2%
93.1%
79.8%
1.000
800
EUR 800m to
be achieved
by year-end
2014
800
600
70%
400
200
425
250
165
358
Broadcasting German-speaking
Digital & Adjacent
0
CMD 2015 target
639
linear projection
of CMD target
125
116
Content Production & Global Sales
Group
AchievementbybyQ2
H12014
2014
Achievement
| October 15, 2014
Continuing operations. Please note: Broadcasting German-speaking includes Pay TV. Digital & Adjacent revenues excl. 9Live and excl. Pay TV.
Page 40
… and expect to achieve 2015 strategic goals already this year
Strategic goals 2010 - 2015
Maintain leading competitive position
Expand TV ad market,
drive distribution revenues
Strengthen perception
of TV being most efficient medium
Increase revenue share
outside Broadcasting Germany
| October 15, 2014
Achievements by 2014
Market leader in TV and key
digital businesses
✔
>EUR 170m TV ad market growth since 2010,
>EUR 40m distribution revenue growth
✔
Highest advertising effectiveness,
highest long-term ROI in media
✔
Increase from 23% to 29%
✔
Page 41
All segments ahead of pro-rata 2018 revenue growth targets
[Achievement by H1 2014, in EURm]
2012-2018
Degree of
achievement
34.8%
32.5%
34.6%
33.4%
1.000
1,000
800
600
600
400
200
0
334
300
105
Broadcasting German-speaking
195
| October 15, 2014
100
35
Digital & Adjacent
CMD 2018 target
Continuing operations
25.0%
linear projection
of CMD target
Content Production & Global Sales
Group
Achievement
2014
Achievement
byby
Q2H1
2014
Page 42
Strategic growth focus of our four pillars
Broadcasting
German-speaking
Create strong
cashflow out of a
leading position in a
large growing
high margin
market
Distribution
Digital & Adjacent
Content Production
& Global Sales
Create highly
Digital Entertainment:
Enrich access
profitable FTA
distribution
Participate in dynamic
revenues and
Digital Commerce: Exploit the
participate in
Pay TV growth
convergence of TV and
digital commerce
content and
leverage value/
scaling
potential
market growth
to
opportunities
Adjacent: Complementary high
margin opportunities
| October 15, 2014
Page 43
TV Operations
TV growth plan by 2018
Operating a leading channel portfolio delivering superior value to advertisers
Rational investment approach – hit optimal cost per hour relative to revenues per hour;
avoid unprofitable genres and achieve that up to 50 percent of our program hours are cost free
Good genre split balance between consumer preferences and optimization of profits
Balanced investment mix between lighthouse formats, “Basic TV”
and new innovative low-cost concepts
EUR 125m
Lead digital innovations to drive viewer loyalty and TV impact
Leverage pricing opportunities
Ad Sales
Gap to go
Target/build new advertising segments and attack print spendings
+1.4%
implied revenue
CAGR H1 2014-20181
Regional/local/individualized advertising
Create new ad customer segments/regulatory attack on ads on public channels
TV-Digital enhancement/Second screen apps
| October 15, 2014
1 H1 2014-2018
Page 44
Distribution growth plan by 2018

Our linear assets everywhere, anytime on any device

Strive for 100% reach of our digital assets on key relevant devices

Monetization of technology – HD and future technology growth potential
Gap to go

Strengthen and grow our Pay TV business
EUR 71m
+14.6%
implied revenue
CAGR H1 2014-20181
| October 15, 2014
1 H1 2014-2018
Page 45
Digital & Adjacent growth plan by 2018

AdVoD: Invest in new content and MCN; drive sales excellence as well as new ad technologies

PayVoD: Add new/extend studio deals and further improve user experience

Games: Leverage scale effects, develop strong position in mobile and assess partnership options

M4R/E: Foster value add beyond TV-Media and expand deal funnel to new countries

Travel Cluster: Drive consolidation and leverage intra cluster synergies

Digital commerce: Continue building existing clusters und build further
verticals in new investment categories (physical and non- physical good)

Adjacent: Enter new adjacent segments and digitalize business

Tech/Data: Implement tech operational excellence and exploit full potential of data
| October 15, 2014
1 H1 2014-2018
Gap to go
EUR 405m
+13.5%
implied revenue
CAGR H1 2014-20181
Page 46
Content Production & Global Sales growth plan by 2018
Gap to go

Continue to build scale across key markets (US, UK)

Become a leading independent source of English-language

Strategically launch and own global formats

Further build digital production capabilities

Create, own and monetize “brands”
scripted product
| October 15, 2014
1 H1 2014-2018
EUR 65m
+9.5%
implied revenue
CAGR H1 2014-20181
Page 47
Summary: ProSiebenSat.1 financial targets 2012 – 2018
Revenue growth
+EUR 1bn
Recurring EBITDA growth (CAGR)
mid single-digit
Underlying net income (CAGR)
above revenue
CAGR
Free cash flow1 (CAGR)
above revenue
CAGR
| October 15, 2014
1 Before M&A, CAGRs in %
Page 48
We update our 2014 financial targets
FY 2014 targets
Group revenue growth
High-single digit
Recurring EBITDA
Above prior year
Net income
Above prior year
Financial leverage
| October 15, 2014
Continuing operations. 1 Previous guidance was mid to high single-digit Group revenue growth
1.5 – 2.5x
Page 49
Outlook: ProSiebenSat.1 confirms 2014 and mid-term targets
FY 2014 outlook update1
CMD targets 2015
to be achieved in 2014
High single-digit Group
revenue growth
EUR 639m revenue
growth by H1 2014
| October 15, 2014
1 Previous guidance was mid to high single-digit Group revenue growth
CMD targets
2012-2018
EUR 1bn revenue
growth by 2018
Page 50
Summary

TV will remain strong with P7S1 being a leader

Powerful TV/Digital synergies driven by advertising, content
and business model innovations

Strategy will broaden its geographic and business scope

Strong pipeline of innovations supported by positive structural
trends will create dynamic growth

On path to at least hit 2015/2018 CMD growth targets
| October 15, 2014
Page 51
Disclaimer
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, 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.
| October 15, 2014
Page 52