Results 2005 Annual Investors and Analysts Conference

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1 Results 2005 Annual Investors and Analysts Conference Guillaume de Posch, Chief Executive Officer Lothar Lanz, Chief Financial Officer, Legal Affairs & Human Resources Peter Christmann, Marketing & Sales Munich, February 21, 2006

2 Agenda Record year 2005 TV advertising market financial statements (IFRS) Outlook for 2006 Appendix Page 2

3 ProSiebenSat.1 Group: Record Year 2005 Record earnings in the history of the Group. ProSiebenSat.1 Group boosts revenue, EBITDA and earnings significantly. Revenues EUR 1,989.6 Mio +8.4% Consolidated profit EUR Mio +65% EBITDA EUR Mio +30% EBITDA margin 21.0 % +20% Pre-tax profit EUR Mio +61% Earnings per share* 1.02 EUR +59% 7. *per preferred share Figures 2005 preliminary and unaudited Page 3

4 ProSiebenSat.1 Group: Strengthening of core business Free TV The Group has reached in 2005 the best audience share in five years. Audience share (14-49) ProSiebenSat.1 Group* in (in percent) % points +0.9% points % points *Sat.1, ProSieben, kabel eins, N24 Source: AGF/GfK Fernsehforschung / SevenOne Media Page 4

5 ProSiebenSat.1 Group: Top programming in 2005 Top five formats of the stations in Audience share (14 to 49 age group) 1. Verliebt in Berlin (up to 26.4%) 2. Die Luftbrücke - Nur der Himmel war frei (up to 31.0%) 3. Schillerstraße (up to 24.0%) 4. Das Gespenst von Canterville (26.1%) 5. Promi ärgere Dich nicht (21.9%) 1. Spiderman (36.8%) 2. Men in Black II (32.3%) 3. Desperate Housewives (up to 23.1%) 4. Das große TV total Turmspringen 2005 (26.5%) 5. Galileo Spezial: Tsunami (27.0%) 1. Ein Frage der Ehre (11.1%) 2. Al Bundy night (10.2%) 3. Spurlos verschwunden Without a Trace (up to 10.0%) 4. Die besten Filmsongs aller Zeiten (up to 7.3%) 5. Leuchtturmbau (up to 9.1%) 1. Livecoverage of the "Discovery" landing (4.6%) 2. Livecoverage of the results of the Michael Jackson trial (3.3%) 3. Special report on the Rudolph Moshammer murder (3.7%) 4. N24 tsunami special "Die Welle des Todes" (2.3%) 5. Kronzuckers Kosmos (up to 6.0%) Source: AGF/GfK-Fernsehforschung, SevenOne Media Page 5

6 ProSiebenSat.1 Group: Diversification expanded Diversification with significant increases due to organic growth and the acquisition of 9Live. External revenues and EBITDA (in EUR m) Diversification without 9Live Diversification including 9Live % % % % Live is consolidated since June 1, Figures 2005 preliminary and unaudited External revenues EBITDA Page 6

7 ProSiebenSat.1 Group: Diversification expanded New business models and cooperations drive diversification. Further growth by acquisitions. New diversification initiatives 2005 CallTV/Audiotex Acquisition of 9Live New Call TV shows on Sat.1, kabel eins and ProSieben Online ICQ messenger deal: ProSieben content on the ICQ portal Acquisition of majority stake in wetter.com Launch of a VoD portal on T-Online Pay TV Launch of ProSiebenSat.1 Welt Acquisition of majority stake in wetter.com s weather channel Mobile Launch of UMTS content with Vodafone, T-Mobile and O2 Others Foundation of SevenOne International as international program sales New Business Music: Joint-Venture with Warner Music Group Co-branding models with O2 Betting (Austria) Home entertainment (DVD) Page 7

8 ProSiebenSat.1 Group: Achievements 2005 The ProSiebenSat.1 Group has reached the goals it had set for Revenues and earnings up. Further improvement of profitability in a stagnant TV advertising market with stable costs 2. Further growth of audience and advertising market share of the group Reduction of the dependency on the TV advertising market by expansion of diversification revenues to nine percent of total revenues Sat.1, kabel eins and N24 enhance profitability significantly Page 8

9 Agenda Record year 2005 TV advertising market financial statements (IFRS) Outlook for 2006 Appendix Page 9

10 TV advertising market Germany: Gross revenues 2005 ProSiebenSat.1 Group shows highest growth of advertising revenues. Gross advertising revenues 2005 vs (in EUR m) % +3.2% 3, , , ,002.4 Gross TV advertising revenues total: +4.2 percent % -11.6% ProSiebenSat.1 Group RTL Group RTL II ARD/ZDF ProSiebenSat.1 Group: Sat.1, ProSieben, kabel eins, N24. RTL Group: RTL, Vox, Super RTL, n-tv Source: Nielsen Media Research Page 10

11 TV advertising market Germany: Gross revenues TV advertising market with increase in the second half of Gross advertising revenues 2005 vs. 2004, comparison of half years (in EUR m) % 1,640 1, % 1,697 1, % -1.4% 1,625 1,514 1,396 1,377 H H H H % -9.0% -12.1% % ProSiebenSat.1 Group RTL Group RTL II ARD/ZDF ProSiebenSat.1 Group: Sat.1, ProSieben, kabel eins, N24. RTL Group: RTL, Vox, Super RTL, n-tv Source: Nielsen Media Research Page 11

12 TV advertising market Germany: Top 10 TV ad sectors Food industry is the most important industry for TV advertising in Gross TV advertising spendings by sector in 2005 (in EUR m) TV advertising total 8, ,046.7 Food 1,483.0 Personal Care Media Beverages Transport & Cars Services IT & Communication Finance Retail & Mail Order Cleaning Source: Nielsen Media Research Page 12

13 TV advertising market Germany: Top 10 drivers 2005 Service industry leads TV ad growth with an increase of 20 percent. Top 10 sectors according to growth of TV advertising spendings (in EUR m) Services Revenues Changes / % Beverages % Audio & Video Cleaning IT & Communication Textile & Clothing Pharmacy Home & Garden Building Industry Food % % % % % % % 1, % Source: Nielsen Media Research Page 13

14 TV market in Germany: Net advertising expenditure TV net advertising investments 2005 at 1997/1998 level. German TV net advertising investments (in EUR bn) % +6.8% +9.1% -5.1% -11.5% -3.7% +1.3% * 4, ,5 4, ,75 3, * Source: ZAW, 2005e: ProSiebenSat.1 estimate Page 14

15 Agenda Record year 2005 TV advertising market financial statements (IFRS) Outlook for 2006 Appendix Page 15

16 ProSiebenSat.1 Group: Record year 2005 ProSiebenSat.1 Group with record pre-tax profit in ProSiebenSat.1 Group revenues and pre-tax profit 2001 to 2005 (in EUR m) Revenues Pre-tax profit , , , , , Figures 2005 are preliminary and unaudited. 2001/2002 according to German GAAP, from 2003 IFRS Page 16

17 ProSiebenSat.1 Group: Record year 2005 Revenues increase by organic growth and the acquisition of 9Live. Revenues and costs 2005 vs (in EUR m) Revenues Costs % 1, , , % 1, * ** Figures 2005 preliminary and unaudited. *Thereof 9Live: EUR 54.0 m. **Thereof 9Live: EUR 37.9 m Page 17

18 ProSiebenSat.1 Group: Costs Moderate cost increase despite acquisition of 9Live in ProSiebenSat.1 Group total costs by line item in 2005 vs (in EUR m) 1, % +14.2% +6.0% -1.1% +6.0% 1,275.2 Total cost increase: EUR 43.4 m (thereof 9Live: EUR 37.9 m) -0.9% Cost of sales Selling expenses Administrative expenses Programming assets consumption* Personnel expenses** Depreciation and amortization** Figures 2005 preliminary and unaudited. *Included in cost of sales. **Included in cost of sales, selling expenses and administrative expenses Page 18

19 ProSiebenSat.1 Group: Earnings ProSiebenSat.1 Group with significant increase in EBITDA and pre-tax profit in EBITDA and pre-tax profit of ProSiebenSat.1 Group 2005 vs (in EUR m) EBITDA Pre-tax profit % % * ** Figures 2005 preliminary and unaudited. *Thereof 9Live: EUR 18.6 m. **Thereof 9Live: EUR 16.6 m Page 19

20 ProSiebenSat.1 Group: Consolidated profit/eps ProSiebenSat.1 Group increases the consolidated profit up to 65.3 percent in Consolidated profit (EUR m) and earnings per preferred share (EUR) ProSiebenSat.1 Group 2005 vs Consolidated profit Earnings per share 300 1, % , % , * 0, Figures 2005 preliminary and unaudited. *Thereof 9Live: EUR 16.8 m Page 20

21 ProSiebenSat.1 Group: Revenues Revenue increase in the fourth quarter due to growth of advertising revenues. Revenues ProSiebenSat.1 Group 2005 vs. 2004, comparison of quarters (in EUR m) % % % % Q1 Q2 Q3 Q4 Figures 2005 preliminary and unaudited Page 21

22 ProSiebenSat.1 Group: 2005 financial statements Record EBITDA for ProSiebenSat.1 Group. EBITDA ProSiebenSat.1 Group 2005 vs. 2004, comparison of quarters (in EUR m) % % % % Q1 Q2 Q3 Q4 Figures 2005 preliminary and unaudited Page 22

23 ProSiebenSat.1 Group: Net financial debt Reduction of net debt despite higher dividends and 9Live acquisition. Net debt ProSiebenSat.1 Group 2005 vs (in EUR m) Net debt/ltm-ebitda 0.9x 0.5x Debt instruments as per December 31, % RCF Notes 0 April 2009 May * Notes 45.5 Mortgages July * First call exercisable in July 2006 (premium: 5.625%) Current long-term credit ratings: Moody s: Ba1 (Developing) Fitch: BBB- (Positive outlook) Figures 2005 preliminary and unaudited Page 23

24 ProSiebenSat.1 Group: 2005 financial statements Key Figures Changes EUR m EUR m EUR m percent Revenues 1, , EBITDA EBIT Financial result Pre-tax pofit Consolidated profit Earnings per share of preferred stock acc. to IAS (EUR) Programming investments Free cashflow* Total assets 2, , Shareholders' equity 1, , Equity ratio 58.9% 48.8% -/ EBITDA margin 21.0% 17.5% -/ Net financial debt incl. Bond Net financial debt/ltm-ebitda 0.5x 0.9x Employees (averaging full-time equivalent jobs) 2,788 2,699 -/- 3.3 Figures 2005 are preliminary and unaudited. *Post acquisition of 9Live Page 24

25 ProSiebenSat.1 Group: 2005 financial statements Results Subline [Arial per segment 14, bold, (in schwarz] EUR m) Weitere Zeile für Erläuterungen [Arial 14, light, schwarz]. Revenues External revenues EBITDA Operating profit % % % % Free TV 1, , , , Transaction TV /- -/ /- -/ /- -/ /- -/- Other diversification Figures 2005 preliminary and unaudited Page 25

26 ProSiebenSat.1 Group: 2005 financial statements Subline [Arial 14, bold, schwarz] Weitere Zeile für Erläuterungen [Arial 14, light, schwarz]. Station Results (in EUR m) Revenues EBITDA Pre-tax profit % % % Sat ProSieben kabel eins N Figures 2005 preliminary and unaudited Page 26

27 Agenda Record year 2005 TV advertising market financial statements (IFRS) Outlook for 2006 Appendix Page 27

28 Outlook 2006: Core business TV Experts expect a slight improvement of the economy and private consumption in Development of GDP and private consumption 1999 to 2006 (in percent) Real GDP Consumer demand % % e* e* GDP and consumer demand in real terms. Source: Statistisches Bundesamt, *2006: Wirtschaftsforschungsinstitute Page 28

29 Outlook 2006: Core business TV Forecasts for the advertisng market and the TV advertising market in Germany. Net figures, in percent WARC Zenith ZAW WARC Zenith Advertising market in total TV advertising market Source: ZAW, WARC, Zenith Optimedia Page 29

30 Outlook 2006: Core business TV ProSiebenSat.1 Group expects the German net TV advertising market to grow by 2 percent in Net TV advertising investments, changes from previous year (in percent) e* 2006e* Source: ZAW, *ProSiebenSat.1 estimates Page 30

31 Outlook 2006: Core business television Programming for 2006: Highlights of the stations "Verliebt in Berlin" and a subsequent telenovela "Das Wunder von Bern" Comedies like "Schmitz komm raus!" Series and cycles like "Allein unter Bauern" Shows like "Promi ärgere Dich nicht!" Blockbusters like "Fluch der Karibik" International premium series like "Grey's Anatomy" Entertainment events like "Germanys Next Topmodel by Heidi Klum" The accessprime highlight "Lotta in Love" More science e.g. with "Galileo Extra" and new BBC co-productions "Die besten Filme aller Zeiten", e.g. "Der Mann in der eisernen Maske" "Medium" The US top serie as Free TV premiere in Germany "4 Flügel, Küche, Bad" kabel eins builds a windmill "Quiz Taxi" The slightly different quiz show with Thomas Hackenberg "Ultimate Desasters" Four part international docu-co-production "Arabella Kiesbauer" "Studio 24" Stories from Germany with Claudia Eberl (Current affairs magazine with stories from Germany from ) "Make Money" (AT) (New stock market show) Source: AGF/GfK-Fernsehforschung, SevenOne Media Page 31

32 Outlook 2006: Digital ProSiebenSat.1 Group has signed a contract with DSL provider Telefonica and is negotiating with other DSL providers. Offers via DSL Streaming of stations: Sat.1, ProSieben, kabel eins, N24, 9Live Planned: Pay channels of the Group: Sat.1 Comedy, kabel eins Classics New revenue sources Share of fees Share of Pay revenues Expansion of reach Addition distribution, additional reach for ProSiebenSat.1 channels Signal protection Digital Rights Management to secure license requirements Encryption of basic package Page 32

33 ProSiebenSat.1 Group: Strategic goals for 2006 Leading commercial TV Group in Germany Strengthening of the core business TV Expansion of diversification Positioning for the digital world Audience market share of around 30 percent (14-49) despite sports year Strengthening of the position in the TV advertising market Organic growth and acquisitions Increasing of the diversification up to more than 12 percent Launch of two Pay TV channels (Q2 2006) Program sales via DSL (IPTV/Vod) Increase of revenues and earnings Page 33

34 Agenda Successes in fiscal 2005 TV advertising market financial statements (IFRS) Outlook for 2006 Appendix Page 34

German TV market: Ratings Development of audience market shares. Audience share (14 to 49 age group) 2003 to 2005 (in percent) 28.9% 0.5% 4.9% 30.3% 29.4% 0.8% 0.5% 5.2% 5.5% 26.1% 0.6% 25.3% 25.7% 0.

35 German TV market: Ratings Development of audience market shares. Audience share (14 to 49 age group) 2003 to 2005 (in percent) 28.9% 0.5% 4.9% 30.3% 29.4% 0.8% 0.5% 5.2% 5.5% 26.1% 0.6% 25.3% 25.7% 0.5% 0.6% 2.3% 2.5% 2.7% 11.5% 11.6% 12.3% 5.0% 5.5% 6.4% 16.3% 16.8% 15.4% 12.0% 12.1% 11.7% 18.2% 16.8% 16.0% 7.1% 7.1% 7.5% 6.5% 7.5% 6.5% 7.6% 8.7% 8.0% 7.3% 8.8% 8.1% RTL Group: n-tv: 50.0%, RTL II: 35.9%, Super RTL: 50.0%; Vox: 99.7% Source: RTL Group Source: AGF/GfK Fernsehforschung / pc#tv aktuell / SevenOne Media Page 35

36 ProSiebenSat.1 Group: 2005 financial statements Key Figures Q Q Changes EUR m EUR m EUR m percent Revenues EBITDA EBIT Financial result Pre-tax profit Consolidated profit Earnings per share of preferred stock acc. to IAS (EUR) Programming investments Free cashflow Total assets 2, , Shareholders' equity 1, , Equity ratio (percent) 58.9% 48.8% -/ EBITDA margin (percent) 26.4% 20.8% -/ Net financial debt incl. Bond Net financial debt/ltm-ebitda 0.5x 0.9x Employees (averaging full-time equivalent jobs) 2,855 2,667 -/- 7.0 Figures 2005 are preliminary and unaudited Page 36

37 ProSiebenSat.1 Media AG: Shareholder structure ProSiebenSat.1 Media AG 12.0% Voting shares 12.0% Preference shares 12.0% Share capital 88.0% Voting shares 13.0% Preference shares 50.5% Share capital 0.0% Voting shares 75.0% Preference shares 37.5% Share capital Axel Springer AG P7S1 Holding L.P. Free Float 100% German Media Partners L.P. Saban Capital Companies Alpine Equity Partners Bain Capital Investors Hellman & Friedman Providence Equity Partners Putnam Investments Quadrangle Group Thomas H. Lee Partners Page 37

38 ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D Unterföhring Phone +49/89/ Fax +49/89/ Page 38

Business Performance as of September 30, 2005

Business Performance as of September 30, 2005 Guillaume de Posch, Chief Executive Officer Lothar Lanz, Finance, Legal Affairs & Human Resources Munich, November 10, 2005 Agenda 3rd Quarter 2005: What have