Business Performance as of September 30, 2005

Transcription

1 Business Performance as of September 30, 2005 Guillaume de Posch, Chief Executive Officer Lothar Lanz, Finance, Legal Affairs & Human Resources Munich, November 10, 2005

2 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 2

3 3rd Quarter 2005: What have we achieved? The ProSiebenSat.1 Group had a very successful 3rd Quarter 2005: Core business Television and Diversification strengthened, revenues and profit up significantly. 1. Revenues up by 15% from EUR m to EUR m 2. EBITDA up by 176% from EUR 21.7 m to EUR 59.9 m Pre-tax profit grew by factor nine from EUR 4.3 m to EUR 38.5 m Diversification strengthened due to full consolidation of 9Live Audience and advertising market shares further extended Page 3

4 3rd Quarter 2005: What have we achieved? Growth of advertising revenues due to significant rise of performance of the family of stations during the 3rd Quarter Audience share of ProSiebenSat.1 Group*, age group, in percent %points Q Q Q Q Basis: All TV households Germany (D+EU) Source: AGF/GfK-Fernsehforschung / pc#tv aktuell / Seven One Media Page 4

5 What are the main sources for growth in TV advertising? The German TV advertising market grew by 5.8% in total during the 3rd Quarter From Q1 to Q growth rate was around 3.5%. Total gross advertising of Top 10 TV industries in EUR m Food Q3 05 vs. Q % Q1-Q3 05 Q1-Q3 05 vs. Q1-Q3 04 1, % Personal Care % % Beverages % % Media % % Services % % Transport & Cars % % IT & Communication % % Cleaning % % Finance % % Retail & Mail Order % % Source: Nielsen Media Research Page 5

6 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 6

7 Q1-Q3 2005: Where does the Group stand? The ProSiebenSat.1 Group enhances revenues, profit and profitability despite an overall difficult advertising market. Revenues EUR 1,353.6 m % Consolidated profit EUR m % EBITDA EUR m % EBITDA margin 18.5 % % Pre-tax profit EUR m % Earnings per share* 0.58 EUR % 7. *per preference share Page 7

8 Q1-Q3 2005: Group Performance Core business Television: The family of stations of the ProSiebenSat.1 Group continues to rise its market share in Audience share ProSiebenSat.1 Group*, age group, in percent Q1-Q Q1-Q Source: AGF/GfK-Fernsehforschung, SevenOne Media *Sat.1, ProSieben, kabel eins, N24 Page 8

9 Q1-Q3 2005: Audience Market Shares Germany ProSiebenSat.1 Group: The family of stations stays continuously popular. Audience market share Q1-Q3 2005, age group, in percent 29.1% 30.3% 0.8% 0.5% 5.1% 5.5% 25.1% 25.5% 0.5% 0.6% 2.4% 2.6% 11.4% 12.2% 5.4% 6.4% 17.2% 15.6% 12.1% 11.8% 16.8% 15.9% 7.7% 6.6% 8.2% 7.4% 7.7% 6.6% 9.0% 8.2% Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q Source: AGF/GfK-Fernsehforschung, SevenOne Media, Panel D+EU RTL Group shares: n-tv: 50.0%, RTL II: 35.9%, Super RTL: 50.0%; Vox: 99.7% Source: RTL Group Page 9

10 ProSiebenSat.1 Group: Top Programs Top programs of the ProSiebenSat.1 Group of the 3rd Quarter Audience share, age group, in percent Verliebt in Berlin (up to 26.4%) UEFA Champions League (up to 22.5%) Pastewka (up to 20.0%) Asterix & Obelix: Mission Kleopatra (19.6%) Das Zimmermädchen und der Millionär (17.4%) Galileo Spezial: Tsunami (27.0%) Tsunami (26.5%) The Transporter (25.8%) Sarah & Marc in Love Die Hochzeit des Jahres (up to 23.7%) Die TV total Bundestagswahl (18.7%) Source: AGF/GfK-Fernsehforschung, SevenOne Media Missing Verzweifelt gesucht (up to 10.0%) Full Metal Jacket (9.3%) Spurlos verschwunden - Without a Trace (up to 9.9%) K1 Reportage (up to 9.3%) Reklame! (up to 9.1%) Frühreport (up to 4.5%) Morgenreport (up to 4.5%) Was erlauben Strunz (up to 1.3%) N24 Live: Landung der Discovery auf dem Luftwaffenstützpunkt (4.6%) 9-11 Todesflug aufs Pentagon (1.7%) Page 10

11 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 11

12 ProSiebenSat.1 Group: 3rd Quarter 2005 Positive effects on revenues due to higher advertising revenues and full consolidation of 9Live. In EUR m Revenues Costs % 415.9* % 370.1** Q Q Q Q * Thereof revenues 9Live: EUR 23.4 m ** Thereof costs 9Live: EUR 14.4 m Page 12

13 ProSiebenSat.1 Group: 3rd Quarter 2005 Results The growth in revenues strongly affects EBITDA and pre-tax profit. In EUR m EBITDA Pre-tax profit % 59.9* % 38.5** Q Q Q Q * Thereof EBITDA 9Live: EUR 10.1 m ** Thereof pre-tax profit 9Live: EUR 9.4 m Page 13

14 The most successful 3rd quarter for the Group The ProSiebenSat.1 Group has had the best third quarter result of its history. EBITDA ProSiebenSat.1 Group, in EUR m Q Q Q Q Q Page 14

15 ProSiebenSat.1 Group: 3rd Quarter 2005 Key Figures Q Q Changes EUR m EUR m EUR m percent Revenues 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 1, , Shareholders equity 1, Equity ratio 54.5% 47.8% -/ EBITDA margin 14.4% 6.0% -/ Net financial debt incl. Bond Net financial debt/ltm-ebitda 1.1x 1.4x Employees (averaging full-time equivalent jobs) 2,838 2,685 -/- 5.7 Page 15

16 ProSiebenSat.1 Group: September 30, 2005 Net Debt Net financial debt further down despite Euvia acquisition and higher dividends. Net-debt shows positive trend due to strong cashflows. Net debt/ltm-ebitda 1.4x 1.1x Debt instruments as per September 30, % RCF 200* Notes 100 Notes 46.0 Mortgages 0 April 2009 May 2009 July * First call exercisable in July 2006 (premium: 5.625%) Sept. 30, 2004 Sept. 30, 2005 Current long-term credit ratings: Moody s: Ba1 (Review for Possible Downgrade) Fitch: BBB- (Rating Watch Negative) Page 16

17 ProSiebenSat.1 Group: Third Quarter 2005 Stations Higher advertising revenues due to rise of performance of all stations. Especially kabel eins and N24 with significant growth. In EUR m Revenues EBITDA Pre-tax profit Q Q Q Q Q Q Sat % / /- ProSieben % % % kabel eins % % % N % % % Page 17

18 ProSiebenSat.1 Group: Third Quarter 2005 Diversification SevenOne Intermedia: Online advertising and Mobile grow. MM MerchandisingMedia: Sports merchandising increased, shift of CRM. 9Live: Internal and external effects. In EUR m Revenues EBITDA Pre-tax profit Q Q Q Q Q Q SevenOne Intermedia % % % Merchandising % % % 9Live % % % Page 18

19 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 19

20 ProSiebenSat.1 Group: Q1-Q Revenues benefit from higher advertising revenues, the acquisition of 9Live and the organic growth of the business segment Diversification. In EUR m Revenues Costs 2,500 1, % 1, ,139.7** 2,000 1,500 1, % 1,353.6* 1, , Q1-Q Q1-Q Q1-Q Q1-Q * Thereof revenues 9Live: EUR 31.6 m ** Thereof costs 9Live: EUR 20.3 m Page 20

21 ProSiebenSat.1 Group: Q1-Q Results Surpassing growth of pre-tax profit due to rising revenues in 3rd Quarter and the improved financial result in the 2nd Quarter In EUR m EBITDA Pre-tax profit % 250.8* % 202.8** Q1-Q Q1-Q Q1-Q Q1-Q * Thereof EBITDA 9Live: EUR 13.1 m ** Thereof pre-tax profit 9Live: EUR 11.8 m Page 21

22 ProSiebenSat.1 Group: Q1-Q Key Figures Q1-Q Q1-Q changes EUR m EUR m EUR m percent Revenues 1, , 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 1, , Shareholders equity 1, Equity ratio (percent) 54.5% 47.8% -/ EBITDA margin (percent) 18.5% 16.2% -/ Net financial debt incl. Bond Net financial debt/ltm-ebitda 1.1x 1.4x Employees (averaging full-time equivalent jobs) 2,766 2,710 -/- 2.1 Page 22

23 ProSiebenSat.1 Group: Q1-Q Stations Improved stations performance yields increased revenues. In EUR m Revenues EBITDA Pre-tax profit Q1-Q3 05 Q1-Q3 04 Q1-Q3 05 Q1-Q3 04 Q1-Q3 05 Q1-Q3 04 Sat % % % ProSieben % % % kabel eins % % % N % / % Page 23

24 ProSiebenSat.1 Group: Q1-Q Diversification SevenOne Intermedia: Online advertising and Mobile grow. MM MerchandisingMedia: Sports merchandising increased, shift of CRM. 9Live: Pre-tax profit influenced by loan repayment. In EUR m Revenues EBITDA Pre-tax profit Q1-Q3 05 Q1-Q3 04 Q1-Q3 05 Q1-Q3 04 Q1-Q3 05 Q1-Q3 04 SevenOne Intermedia % % % Merchandising % % % 9Live % % % Page 24

25 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 25

26 Transaction: ProSiebenSat.1 Media AG - Axel Springer AG Step 1: Acquisition of majority in ProSiebenSat.1 Media AG by Axel Springer AG. On Aug. 5, 2005, Axel Springer announced to acquire all ordinary shares and all preference shares currently directly and indirectly held by P7S1 Holding L.P. 88% of ordinary voting shares (44% of total share capital) 13% of preference shares (6.5% of total share capital) Axel Springer made a voluntary tender offer in cash to the outstanding preference shareholders. The offer price is the 3-months volume weighted average price of the ProSiebenSat.1 preference shares prior to the announcement day and amounted to EUR per share. At the end of the acceptance term on November 3, 2005, the offer had been accepted for 31.2 million preference shares. This is equivalent to 28.5 percent of the preference share capital and 14.3 percent of the share capital of ProSiebenSat.1 Media AG. ProSiebenSat.1 Media AG (shareholder structure after closing of SPA)* 100.0% Voting Shares 25.0% Preference Shares 62.5% Share capital 0.0% Voting Shares 75.0% Preference Shares 37.5% Share capital Axel Springer AG Public Free Float *Before any tender offer take up Page 26

27 Transaction: ProSiebenSat.1 Media AG - Axel Springer AG Step 2: Planned merger of ProSiebenSat.1 Media AG and Axel Springer AG post closing of step 1 transaction. Post consummation of the step 1 transaction a merger of ProSiebenSat.1 Media AG and Axel Springer AG is planned The step 2 transaction requires resolutions of the general meetings of both companies. Preference shares are non-voting shares. In the context of the merger Axel Springer intends to issue new non-voting Axel Springer preference shares to the ProSiebenSat.1 preference shareholders The exchange ratio will be determined in a valuation process of the two companies in accordance with German standards of Company Valuation (IDW-ES1) and will be examined by an independent merger auditor. New Axel Springer AG (combined entity after registration of merger) Voting Shares Preference Shares Voting Shares Existing Axel Springer shareholders New Free Float 1 SCG/GMP 2 1 Axel Springer preference shares issued to ProSiebenSat.1 free float preference shareholders in exchange for ProSiebenSat.1 preference shares 2 SCG: Saban Capital Group/GMP: German Media Partners: Purchase of 820,000 voting shares within transaction Page 27

28 Transaction: ProSiebenSat.1 Media AG - Axel Springer AG Process and indicative timeline for SPA and merger. Closing and settlement of the SPA and tender offer are subject to regulatory approval. Completion of the merger process is aimed at the earliest possible date after closing of the SPA and tender offer. Page 28

29 Agenda 3rd Quarter 2005: What have we achieved? Q1-Q3 2005: Where does the Group stand after the first nine months? Figures 3rd Quarter 2005 Figures Q1-Q Transaction Axel Springer AG Outlook Page 29

30 Outlook 2005: TV advertising market German TV advertising market is expected to decrease in Net advertising spendings, changes year on year in percent e* to Source: ZAW/*own estimates Page 30

31 ProSiebenSat.1 Group: Programs 2005 With attractive programming the stations of the ProSiebenSat.1 Group are very well set for the upcoming TV season. Audience share, age group, in percent Top 5 Q1-Q Verliebt in Berlin (up to 26.4%) UEFA Champions League (up to 37.6%) Shrek - der tollkühne Held (23.7%) Das Gespenst von Canterville (26.1%) Edel & Starck (up to 20.8%) Spiderman (36.8%) Men in Black II (32.3%) Galileo Spezial: Tsunami (27.0%) TV total Wok-WM 2005 (25.8%) Sarah & Marc in Love (up to 23.7%) Dirty Harry II (11.7%) Eine Frage der Ehre (11.1%) King of Queens, 7. Staffel (up to 9.6%) K1 Magazin (up to 9.6%) Show: Die besten Filmsongs aller Zeiten (7.3%) Q Die Luftbrücke Nur der Himmel war frei Urmel aus dem Eis Ewig rauschen die Gelder My Big Fat Greek Wedding MegaClever! Minority Report Gangs of New York Alles außer Sex Galileo eine Stunde TV total Turmspringen Proceeding Crime-Friday Best of Formel Eins Der Abba-Event Doku: Extraterrestrial Auf der Spur der Aliens Papst Joh. Paul II: Leben für den Glauben (6.7%) Sonders. zum Tod Rudolph Moshammer (3.7%) Urteil im Jackson-Prozess (3.3%) Die Welle des Todes (2.3%) Welt am Abgrund Wenn die Erde bebt (2.0%) Expanding Live Reporting Expanding Magazines and Talkshows Cinematalk Arabella Kiesbauer Page 31

32 ProSiebenSat.1 Group: Strategic goals ProSiebenSat.1 Group has for 2005 three superior objectives for the Group s future strategic positioning and for the optimization of revenue and operating profit. Increase of revenues and optimization of operating profit Strengthening of core business TV Expansion of diversification Positioning for the digital world Rise of audience market share up to 30% (14-49 age group) Further strengthening of Group s position in TV advertising market Organic growth Rise of diversification share up to over 10% Digital distribution of free TV programs via different platforms Launch of pay TV channels (four channels requested) Page 32

33 ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D Unterföhring Tel. +49/89/ Fax +49/89/ Page 33