Capital Markets Day ProSiebenSat.1 Media AG. Financials. Axel Salzmann, October 5, 2011

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Transcription:

Capital Markets Day ProSiebenSat.1 Media AG Financials Axel Salzmann, October 5, 211

P7S1 has transformed its financial profile 1 We achieved a significant cost reduction and margin uplift 2 We optimized the company portfolio 3 We significantly reduced our leverage 4 We extended our debt maturity profile Page 2

A successful cost and portfolio optimization track record Corporate Events Acquisitions / Divestitures 28 Relocation of Sat.1 to Munich from Berlin headcount reduction of 225 FTEs Disposal of N24, intended to yield future cost reduction for news supply to three entertainment stations headcount reduction of 3 FTEs Quiz channel 9Live shut down headcount reduction of 42 FTEs Jun 29 Jun 21 Aug 211 29 21 211 Agreement on disposal of CMore (consummated in December) for 32m Recurring costs reductions of EUR 221m during 29 (-1% vs prior year) Sale of TV / print operations in the Netherlands and the TV operations in Belgium for 1.23bn announced (closed in June/July) Jun 28 Dec 29 Apr 211 Page 3

Optimization measures deliver significant cost reductions and margin uplift in 28 21 Revenues (EURm) CAGR 4, +1.4% Recurring costs (EURm) CAGR 3, -4.2% 3, 2, 2,922 2,761 3,4 2,61 2, 2,299 2,77 2,11 1,821 1, 1, FY28 FY29 FY21 PF21 (ex. BE/NL) FY28 FY29 FY21 PF21 (ex. BE/NL) Rec. EBITDA (EURm) Rec. EBITDA margin (%) CAGR +17,4% 1, +17.4% 4 8 96 791 3 6 657 697 25.2 2 22.5 4 3.2 3.4 2 1 FY28 FY29 FY21 PF21 (ex. BE/NL) FY28 FY29 FY21 PF21 (ex. BE/NL) Page 4 Note: FY28 adjusted for CMore sale; FY28-FY21 unadjusted for 211 BE/NL cluster sale; PF21 adjusted for BE/NL cluster sale

Portfolio changes: Sale of assets in BE/NL at premium multiple generates immediate value EBITDA multiples (based on 21 recurring EBITDA) +39% 11.8 P7S1 had announced a strategic review of its BE/NL and Nordic assets in Dec 21 1.6 Strategic review completed with sale of BE/NL assets at attractive premium valuation, enterprise value of EUR 1.225bn 7.6 5.5 5.5 FY 21 EBITDA of EUR 115m for BE/NL Immediate value creation from sale at strategic premium of +39% to group trading multiple Closing of BE and NL transactions on June 8 and July 29, 211 respectively April 11 P7S1 trading BE/NL disposal Print only FTA only Page 5 Trading multiple P7S1 as at 21/4/211

Balance Sheet: Significant improvement of financial debt and leverage over time close to investment grade Net debt and leverage multiple In EURm 5.x 5.1x 4.7x 3.3x 3.1x 2.2x 4, 3, 3,328 3,47 3,295 3,21 2,842 1,8 2, 1, 27 28 29 21 H1 211 PF H1 211 Strong financial performance and BE/NL disposal leads to a significant deleveraging Pro forma leverage well inside new leverage target range of 1.5x to 2.5x Leverage: Net debt/ltm recurring EBITDA: LTM recurring EBITDA Page 6

Debt Profile improved through extending EUR 2.1bn of term debt Maturity profile pre A&E / Repayment (EURm) Maturity profile post A&E / Repayment (EURm) 2, 1,5 1,765 TLC 1,795 TLB 2,5 2, 2,84 1,5 1, 5 3.56bn Term Debt* 1, 5 68 TLB TLD 28 TLC 2.36bn Term Debt* 211 212 213 214 215 216 211 212 213 214 215 216 - Successful extension of EUR 2.1bn term debt on July 29, 211 - P7S1 de facto secured a new five year financing on the basis of the existing favorable terms** - EUR 1.2bn repayment on August 24, 211 using BE/NL disposal proceeds * Term debt figures are gross debt amounts and reflect notional amount (i.e. not reduced by finance fees as per IFRS) ** New Facility D with attractive margin of 25 bps Page 7

Deleveraging supports our dividend payout policy Leverage Earnings per share (EUR) 5 5.1x 4.7x 1.5 1.48 ~1.6 4 3.3x 1..69 3 2.2x.5 2 1 -.5 28 29 21 Pro Forma H1 211 1. -.58 28 29 21 211e* 1.2% 1.1% 67.5% 8.%* Payout ratio Leverage: Net debt/ltm recurring EBITDA: LTM recurring EBITDA * Broker Consensus, Sep 211 (based on reported net income) Page 8

P7S1: A leading European broadcasting Group 1 We have significant scale in a European context 2 Our margins are best in class 3 Our major foothold is in Europe's strongest economies 4 P7S1 is investing into growth Page 9

P7S1: Considerable scale and EBITDA generation Revenues 21 (EURm) 5,645 4,293 (Adj.) EBITDA 21 (EURm) 1,237 979 96 791 3,4 2,622 2,61 2,49 533 1,462 1,453 287 855 88 628 549 26 239 228 159 157 8 RTL* MED P7S1 TF1 P/S1 PF (ex. B/NL ITV M6 MTG T5 A3 TVN CME** RTL MED P7S1 P/S1 PF ITV M6 TF1 MTG T5 TVN A3 CME 34% 8% 65% 81% 75% 86% 46% 88% 1% 1% 1% 82% 22% 23% 3% 3% 22% 2% 1% 17% 27% 25% 19% 15% % of revenues in core market EBITDA margin Note: P7S1 unadjusted and adjusted for BE/NL cluster sale. EBITDA as adjusted (recurring EBITDA for P7S1). Page 1 * Representing Germany as the core market despite being headquartered in Belgium. Operations in Belgium, Germany, Netherlands, France and UK. ** Headquartered in Bermuda. Operations are split into 4 core markets and 2 additional markets: Czech Republic, Slovenia, Slovakia, Romania and Croatia, Bulgaria which represent 18% of total revenues.

Our EBITDA margin profile is best in class 35% 27.3 25.2 3.2 22.1 17.9 15.9 15.4 19.5 17.1 16.1 13.3 22.8 22.1 21.9 19.6 16.5 5% 12.2 12.5 28A 29A 21A Source: Company reports. Page 11

In the strongest European economies we are best positioned PF Revenues 21 ex BE/NL (EUR 2,61m)* Pro forma external revenues by region* PF Revenues 21 ex BE/NL (EUR 2,61m)* Pro forma external revenues by segment* CEE 3.9% Nordic 15.4% Diversification German-speaking 12.% 8.7% Free-TV Germanspeaking Free-TV 71.8% International 16.2% 28% of our revenues are generated outside our German-Speaking broadcasting operations Strong market positions in the German-speaking and Nordic countries support our growth * Pro forma for sale of BE /NL cluster in June/July 211. Page 12

The Nordic rationale: Carriage fees and advertising revenues drive high revenue growth and profitability Revenues [EURm] Recurring EBITDA [EURm] 398 14 Radio 356 335 +24.3% Radio 82 74 +49.% 73 FTA advertising 189 235 49 FTA FTA carriage and other 28 29 21 H1 1 H1 11 28 29 21 H1 1 H1 11 Page 13

P7S1 is investing in growth businesses New broadcasting stations OTT/ Video & Online Gaming Expansion of Ventures & Commerce business Content production & global sales Page 14

H1 211 Review & Outlook Update 1 Continued growth in Group revenues and earnings 2 Investing in new initiatives stimulating revenues and earnings 3 Revenue increase across all segments 4 Positive financial outlook for FY 211 - new record EBITDA Page 15

Continued growth in Group revenues and earnings in H1 211 Consolidated revenues (continuing operations) [EURm] Recurring EBITDA (continuing operations) [EURm] +5.% +7.8% 14 12 1 1,226.1 1,288. 4 3 342.1 368.7 8 6 2 4 1 2 H1 21 H1 211 H1 21 H1 211 Page 16

H1 211: Stable operating costs in core business at Group level Operating costs (continuing operations) [EURm] 887.7 13. +3.9% 922.6 47.3 New growth initiatives: First-time consolidation effects, expansion of new stations and production activities 874.7 875.3 Core business: Stable operating costs H1 21 H1 211 We will continue to manage our costs according to the market conditions in which we operate Page 17

H1 211: Revenue increases across all segments Free TV German-speaking Revenues (cont. operations) [EURm] Free TV International Revenues (cont. operations) [EURm] Diversification Revenues (cont. operations) [EURm] +1.6% +16.4.% +1.4.% 9 6 878. 891.7 25 2 15 21.1 234. 2 15 147. 162.3 3 1 5 1 5 H1 21 H1 211 H1 21 H1 211 H1 21 H1 211 Despite the cautious start into 211, ad revenues flat in Germany due to good Q2 performance Austria and Switzerland showed good advertising growth Nordic markets were the primary revenue growth driver (+25%) Full consolidation of maxdome Strong growth of Ventures, Radio, Games and Video Ads 9live with decreasing revenues Page 18

We confirm our positive financial outlook for fiscal 211 Group revenues expected to grow in the mid single-digit percentage range Underlying revenue performance of German-Speaking Free TV segment expected to grow at least low single digit percent while Free TV International and Diversification segment will continue their dynamic revenue increase ProSiebenSat.1 expects another record EBITDA in fiscal 211 Significant reduction of gross and net financial debt post completion of BE/NL disposal Leverage target of 1.5x to 2.5x. Leverage expected to come in well inside target range at YE 211 Q3 trading holding up well across all our three segments despite sovereign debt issue driven uncertainties and volatile financial markets Page 19

Introduction of a new reporting structure in 212 to better fit our four pillar growth strategy 1 Broadcasting German-Speaking 2 Broadcasting International 3 Digital & Adjacent 4 Content Production & Global Sales Page 2

Our segment reporting approach today... FTA German-speaking FTA International Diversification EUR 1,867m external revenues (o/w content production: EUR 14m) EUR 422m external revenues EUR 312m external revenues (o/w radio: EUR 81m) Total Group Revenues PF FY 21 (ex BE/NL): EUR 2,61m Page 21

... vs. our four pillar growth strategy approach in 212 Broadcasting German-speaking Broadcasting International Digital & Adjacent Diversification Content Production & Global Sales EUR 1,853m external revenues EUR 53m external revenues EUR 231m* external revenues EUR 66m total revenues EUR 14m external revenues Total Group Revenues PF FY 21 (ex BE/NL): EUR 2,61m Page 22 *incl. 9live

In Summary 1 P7S1 has successfully transformed its financial profile 2 P7S1 remains focused on cost management 3 Positive financial outlook 4 We are well prepared to deal with any macro uncertainties Page 23

Disclaimer This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1 AG"), its subsidiaries/affiliates and/or ProSiebenSat.1 Group as a whole (all hereinafter collectively referred to as P7S1 Group ), including opinions, estimates and projections regarding P7S1 Group's financial position, business strategy, plans and objectives of management and future operations and including opinions, estimates and projections regarding the markets in which it presently operates or in which it expects to operate in the future. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of P7S1 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, its subsidiaries/affiliates or P7S1 Group as a whole 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 P7S1 Group. ProSiebenSat.1 and its subsidiaries/affiliates undertake 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. Page 24