2
2009 at a glance
Figures 2009 preliminary and unaudited. 2008 excl. CMore. Deconsolidation of CMore in November 2008. Recurring costs: Total costs excl. D&A and non-recurring (exceptional) items.
Recurring EBITDA
EUR 696.5m
Revenues 2009
EUR 2,760.8m
EUR 880.5m
Good ratings in
German core market
30.1%
Good results in a tough environment
All earnings figures
above the prior
year: net income of
EUR 144.5m
+6.0%
Good Q4
revenue performance
Recurring costs
reduced by
EUR 221.3m
+221.3%
+1.8%
-5.5%
-9.6%
+0.7%pt
4
Improved audience
market shares
Ad shares in core
market increased
Financial goals
achieved
•
Ratings in core market Germany clearly improved
•
Denmark, Netherlands, Austria, Romania and
Finland above previous year’s level
•
Ad share in German market increased
•
Good acceptance of ad sales model
•
New sales subsidiary SevenOne AdFactory founded
•
Profitability strengthened
•
Efficiency goal exceeded
9
9
9
( )
•
Setup of the new organization in
Munich in July 2009
New growth
initiatives defined
Launch of new and
leaner German TV
organization
Revenue
diversification
•
SevenOne AdFactory for innovative
cross-linked advertising campaigns
•
Successful launch of media for revenue share deals
•
Content and distribution subsidiary RedArrow launched
•
Further expansion of music business
•
Revenue increase of gaming and
online video advertising, but
9Live/Teletext declining
9
9
2009: Major objectives achieved
6
New Member of the Executive Board:
Dan Marks
•
Executive Board Member and Chief New Media Officer
•
Starts May 1st, 2010
•
Dan is a high profile international media expert
Financials 2009
8 Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November 2008. *Total costs excl. D&A and non-recurring items. **EBITDA before non-recurring (exceptional) items.
Q4 2009 – Group:
profitability improved in a tough market
environment / Group revenues up
Revenues In EURm Recurring costs* In EURm Recurring EBITDA** In EURm
adj. CMore adj. CMore adj. CMore
34.9 32.7 876.8 864.6 880.5 620.1 604.4 576.2 279.3 282.8 307.2 0 200 400 600 800 1000 Q4 2008 Q4 2008 Q4 2009 0 200 400 600 800 1000 Q4 2008 Q4 2008 Q4 2009 0 50 100 150 200 250 300 350 400 Q4 2008 Q4 2008 Q4 2009 -4.7% +8.6% +1.8%
Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November 2008. *Recurring EBITDA: EBITDA before non-recurring (exceptional) items.
Revenues In EURm
Recurring EBITDA* In EURm
adj. CMore adj. CMore
22.5 25.2 3,054.2 2,922.2 2,760.8 674.5 656.8 696.5 0 500 1000 1500 2000 2500 3000 3500 2008 2008 2009 0 200 400 600 800 2008 2008 2009 -5.5% +6.0%
2009 – Group’s earnings situation:
10 Figures 2009 preliminary and unaudited. *Total costs excl. D&A and non-recurring expenses.
2009 – Recurring costs:
EUR 221.3m cost reduction,
target of EUR 200m exceeded
Recurring costs* In EURm Non-recurring expenses In EURm 2,413.1 2,077.5 adj. CMore adj. CMore adj. CMore 85.7 85.0
Consumption of programming assets down by EUR 112.9m to EUR 1,068.6m (2008 adjusted for CMore).
Depreciation and amortization In EURm
**Incl. impairment on SBS goodwill of EUR 180m and write-down of EUR 29.8m on property in Berlin
0 500 1000 1500 2000 2500 3000 2008 2008 2009 2,298.8 -9.6% 0 20 40 60 80 100 2008 2009 0 100 200 300 400 2008 2009 147.5 351.2**
Figures 2009 preliminary and unaudited.
2009 – Net income reconciliation:
net income significantly up
In EURm 2009 2008
adjusted for CMore
Net result (after minority interests) 144.5 -119.1
Purchase price allocation (after tax) 50.2 47.7
Currency valuation/Other -9.9 40.5
Goodwill impairment -/- 180.0
Underlying net income 184.8 149.1
2009: Net income and underlying net income improved,
early response on costs with significant positive results
2008: Net income 2008 reflects a non-cash SBS goodwill impairment charge of EUR 180.0m
12 1,698.0 1,735.7 0 500 1000 1500 2000 2008 2009 705.2 797.3 0 250 500 750 1000 2008 2009 357.6 389.2 0 200 400 600 2008 2009 457.9 406.6 0 100 200 300 400 500 2008 2009 80.4 56.2 0 25 50 75 100 2008 2009 158.2 193.5 0 50 100 150 200 2008 2009
2009 – Segments:
our German stations outperformed the TV
ad market, lower advertising revenues due to macroeconomic conditions
Recurring EBITDA, in EURm Recurring EBITDA, in EURm Recurring EBITDA, in EURm
Figures 2009 preliminary and unaudited. Recurring EBITDA: EBITDA before non-recurring (exceptional) items. *Deconsolidation of CMore in November 2008. Diversification figures for 2008 excl. CMore. Revenue contribution of CMore in 2008: EUR 132.0m, recurring EBITDA contribution: EUR 17.7m.
External revenues, in EURm
International Free TV Diversification* German-speaking Free TV
External revenues, in EURm External revenues, in EURm
+12.6%
-2.2% -11.6%
-18.2%
-8.1%
Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November 2008. *2008 incl. CMore Debt facilities In EURm 0 500 1000 1500 2000
July 2014 July 2015 July 2014
600 RCF 1,771 Term Loans B 1,800 Term Loans C
2009 – Debt and liquidity:
good liquidity, reduction of net debt
Net debt down by EUR 112m to EUR 3.295bn
• Leverage (net debt/LTM recurring EBITDA) improved to 4.7x (2008: 5.05x)*
EUR 737m of cash on balance sheet
• EUR 67m of additional undrawn liquidity under the RCF
• Operating cash flow of EUR 1.478bn (2008: EUR 1.359bn)*
• EUR 1.227bn invested in programming assets
(2008: EUR 1.397bn, 2008 excl. CMore: EUR 1.298bn)
Dividend proposal of EUR 2.1m for 2009
• Management will propose the payment of the minimum dividend of EUR 0.02 to the preference shareholders. No dividend to the common shareholders. Respective shareholder resolution to be taken at the AGM held on June 29, 2010. Dividend payment date is June 30, 2010.
14
Summary 2009:
good results in a difficult environment
Revenues Cost base Recurring EBITDA /net income Net debt/ liquidity
•
Generally difficult year but with improving trend in Q4 2009
•
Good performance across the group
•
Cost savings target (EUR 200m) exceeded
•
Good result given challenging market environment
•
Net debt reduced, leverage down to 4.7x
Dividend
•
Dividend proposal for fiscal 2009 of EUR 0.02 per
preference share
Viewer markets 2009
Andreas Bartl, German Free TV Thomas Ebeling, CEO
16 Basis: All German TV households (Germany + EU), 24 hours (Mon-Sun) 14-49 years. Source: AGF/GfK Fernsehforschung / TV Scope / SevenOne Media Audience Research.
1.3 5.5 11.8 10.8 29.4 1.3 6.1 11.9 10.8 30.1 ProSiebenSat.1 Group
SAT.1 ProSieben kabel eins N24
2008 2009
German Free TV business:
ratings improved 2009
TV audience shares in Germany
In percent, 2009 vs 2008
+0.7pts
•
Good business and program performance in the challenging year 2009•
Central scheduling co-ordination leading to optimized channel complimentarity and ratings success over 30%•
Enhanced efficiency and lower costs by centralizing processes•
Create synergies throughcomprehensive use of functions
•
Full centralization of programmingdepartments for optimized use of creative forces
•
Commitment to public function ofinformation on TV, need to optimize news
German Free TV business:
successful launch of new free TV organization in July 2009
• German TV stations SAT.1, ProSieben and kabel eins under one roof in a new structure in Munich
• N24 and SAT.1 editorial departments stay in Berlin
18
Programming outlook 2010
SAT.1 – The major brand for modern family TV
•
New, successful US series like „Vampire Diaries“, „Flash Forward“ and „The Good Wife“•
Strong events with the new season of „Germany‘s next Topmodel by Heidi Klum“ and Stefan Raab events•
Top-Blockbuster line upProSieben – The entertainment brand No.1 for the young media generation
•
Concentrates on its core values as a popular family channel•
First schedule optimizations in effect, e.g. weekend•
Top line up of SAT.1 original movies, US feature films and US series („Die Grenze“, „Crime Sunday“)•
First formats of the new program strategy to be launched beginning in April, e.g. German series, „Perfect 10“kabel eins - Exciting, authentic, reliable and informative
N24 – Germany‘s leading news channel
Programming outlook 2010
•
Continues its dynamic success story•
Powerful feature film line up•
Successful sitcoms to be extended in daytime•
Solid and successful in the very competitive news and documentary segment•
Discussion on economic viability of news channel in group structure to be closed in H120
Our programs shape public opinion and social values.
Journalistic diligence is a matter of course for us.
Our documentary programs, reports and fictional programs create awareness about critical topics and actively promote social integration.
Television is a key element of public culture.
German Free TV business:
We are fully aware of our social responsibility
Full Service Program Status is significant for us • News in ProSieben, SAT.1 and kabel eins are indispensable
• Information content covers 25 to 36 % of the program schedules
• Channel obligations (Regional Windows, Third Party Programs) are accepted but tie up 6% of program costs
ProSiebenSat.1 programs have public value – also besides “classic“ news output
• Some Examples: „Kerner“, „Galileo“, „Abenteuer Leben – täglich Wissen“
• Seven productions from German Free TV stations are actual nominated for Adolf Grimme Prize, thus „Galileo Spezial: Karawane der Hoffnung“ within the categorie „information and culture“
Outlook 2010
– new station launches
FEM3 launched on January 1, 2010 in Hungary
sixx – Germany‘s only female channel will start in May 2010
•
Available for reception in about 14m German households•
First run of US series, servicetainment, feature films and movies•
Special sales model for attracting non TV advertisers•
New special interest channel for women•
Targets attractive audience for advertisers22
Netherlands
27.3%
Belgium
16.2%
Norway
12.9%
Sweden
15.1%
Denmark
15.3%
Finland
2.3%
Hungary
22.1%
Romania
7.3%
Switzerland
16.2%
Austria
17.3%
0.2%pt 1.8%pt 0.3%pt 0.0%pt 0.8%pt 1.1%pt 2.5%pt 0.4%pt 1.4%pt 1.6%ptInternational viewer markets 2009
– generally satisfactory performance
CEE
NL/
Belgium
Nordic
Austria/
Switzerland
Figures refer to extended prime time audience shares / A+CH: 24 hours. 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; target demographic 18-49 years / Romania: Prima TV, Kiss TV; target demographic 15-44 years; Romanian figures are based on the urban population. Figures refer to extended prime time audience shares. Sweden: Kanal 5, Kanal 9; target demographic 15-44 years / Denmark: Kanal 4, Kanal 5, 6‘eren,
ProSiebenSat.1 has long term contracts with nearly every major studio. Business relations with programming suppliers further expanded in 2009.
Studio deals 2009/2010
•
Twentieth Century Fox (D, A, CH)•
Sony Pictures International (D, BE)•
The Walt Disney Company (D, RO)•
Monarchy/New Regency (D, A, CH, BE, NL)•
Tele München Gruppe (D)•
CBS International (NL, BE, RO, HU)•
NBC Universal (HU)New sport deals 2009
•
UEFA Champions League 2009 - 2012 (A, HU)•
UEFA Europa League 2009 – 2012 (A, CH)Rich content pipeline
24
Major trends for programming
•
Lean back / TV as a camp fire experience
•
Parallel and complementary usage of TV and online increases
•
Social communities becoming key reference point for consumers
•
Non-linear usage will increase
•
Interactivity increasingly important
•
Lighthouses supply viewer orientation and structure
•
Viewers’ visual experience needs to be enhanced
/3D3DSales 2009
26 0 1.000 2.000 3.000 4.000 5.000
Total TV ad market SevenOne Media
German sales performance 2009:
ProSiebenSat.1 outperforms
market, good performance in Q4
0 2.500 5.000 7.500 10.000
Total TV ad market SevenOne Media
FY 2009 - gross advertising market
2009 vs. 2008, in EURm
Q4 2009 - gross advertising market
Q4 2009 vs. Q4 2008, in EURm 9,389.5 9,124.4 +2.9% 4,031.7 3,751.0 +9.8% 3,154.6 2,872.6 1,203.5 1,344.1 +11.7% +7.5%
10.3 5.5 6.5 36.6 41.1 11.1 5.1 6.5 34.3 42.9
SevenOne Media IP Germany El Cartel Media Public stations Others 2008 2009
German ad share performance 2009:
market share gains in 2009,
ProSiebenSat.1 strengthened leading competitive position
TV gross ad market share
In percent, 2009 vs 2008
Source: Nielsen Media Research. SevenOne Media incl. 9Live.
+1.8pts -2.3pts
28 Source: Hungary TNS MI, rate card prices/ Sweden: SIFO Reklammätningar / The Netherlands: Nielsen Media Research.
1,032.9 3,080.1 1,064.0 3,060.6 0 1000 2000 3000 4000 Market P7S1
Gross TV Advertising 2009, in EURm vs 2008
322.6 964.9 339.2 1,004.8 0 400 800 1200 Market P7S1
Gross TV Advertising Q4 2009, in EURm vs Q4 2008
356.4 1,396.6 322.4 1,473.0 0 500 1000 1500 2000 Market P7S1 1,468.5 474.6 1,515.3 469.4 0 500 1000 1500 2000 Market P7S1 146.4 420.6 144.1 440.0 0 200 400 600 Market P7S1 94.8 398.0 85.3 414.4 0 100 200 300 400 500 Market P7S1
Sales performance in three biggest international markets 2009
-0.6%
The Netherlands Sweden Hungary
The Netherlands Sweden Hungary
2008 2009 +3.0% +5.2% +4.1% +5.5% -9.5% +4.1% -10.0% +3.2% -1.1% +4.6% -1.6%
Share of Advertising in Netherlands, Belgium, Sweden, Norway, Denmark, Hungary and Romania refers to net share of advertising. *Start of TV Viisi in Q4 2008.
International ad share performance 2009
NL / Belgium
Nordic
CEE
•
Netherlands increased ad share•
Modest decrease in Belgium•
Small decrease in Sweden•
Norway slightly improved ad market share•
Denmark clearly up•
Finland increased ad shares*•
Slightly decreasing ad share in Hungary30 Source: Nielsen Media Research. Trend: Jan. 1 - Feb. 21, 2010.
Germany 2009/2010:
development of major advertising categories
Gross TV advertising of top 10 TV categories
2009 vs 2008, In EURm 472 476 513 576 638 645 648 861 1,229 1,761 200 400 600 800 1.000 1.200 1.400 1.600 1.800 Business Services Pharmacy Finance Telecommunication Trade and Shipment Beverages Motor Vehicles Media and Publishing Cosmetics and Toiletries Food Gross TV Advertising +2.9% +12.9% +11.9% +10.0% -6.5% -5.0% +22.9% -30.5% -10.4% +15.7% +11.9% 7,2779,390 Trend 2010 Sector weight 18.8% 13.1% 9.2% 6.9% 6.9% 6.8% 6.1% 5.5% 5.1% 5.0% 2009 vs 2008
1.6 -5.6 3.3 -3.5 2.3 -0.2 -2.3 -1.6 1.8 -1.4 3.0 10.0 2.5 -5.3 4.3 2.0 5.5 -0.5 -2.0 1.4 1.6 -1.6 -15 -5 5 15
Germany Austria CH NL Belgium Sweden Norway Denmark Finland Hungary Romania Bulgaria
Outlook – Net TV ad market 2010:
research institutes expect
stabilization, but visibility remains low
WARC
ZenithOptimedia
TV ad investments (net)
Change 10 vs 09 in percent, at current prices
Source: WARC: European Advertising & Media Forecast December 2009, SevenOne Media, as at 12/22/2009. Source: ZenithOptimedia: Advertising Expenditure December 2009, SevenOne Media, as at 12/15/2009.
32
Diversification 2009
Online and video strategy pay off
•
maxdome is the leading video-on-demand portal in Germany with 25,000 titlesand approx. 200,000 active users
•
As of February 2010, maxdome offers new service to download and buy videos•
19.27m unique users on ProSiebenSat.1’s networld•
ProSiebenSat.1’ s core online portfolio is among Top 5 online marketers in Germany•
Extraordinary growth of online video views from 103.4m (2008) up to 149.3m in 200934
Games
– ProSiebenSat.1 plays on all platforms
Games business with double digit revenue growth in 2009
•
B2C revenues with box products (Nintendo DS, Nintendo Wii,PlayStation and PC) and international online platforms (item selling, in-game-advertising)
•
With SevenGames.de ProSiebenSat.1 has started the first social gaming platform of a media company in Germany. Belgium, the Netherlands, Norway and Sweden followed step-by-step.Initiatives 2010
•
International rollout will be expanded in 2010 with French andEnglish version to become leading social gaming platform in Europe
•
Relaunch of SAT1Spiele.de starting in Q3 2010Mobile services
–
ProSiebenSat.1 has become a leading
mobile player for audiovisual content in Germany
15 brands
available as mobile websites and apps
100.000 videos delivered to
14 mobile providers
in the past 12 months
500.000 video views
per month across all mobile properties
1.000.000 apps
36 36
Music business with double digit revenue growth in 2009
starwatch Music 2010
– besides extending key business,
starwatch enters two new markets
New gold artists already signed for 2010
Scorpions, Kim Wilde, Katherine Jenkins (already very successful in the UK with five Nr.1 albums) and Gregor Glanz (promising newcomer),
future winner of “Unser Star für Oslo”
Live entertain-ment
starwatch enters two adjactent markets
Build network with live entertainment companies
Three pillars:
starwatch artists live (e.g. Peter Maffay, Westernhagen, Scorpions), spin-off/new TV event concepts (e.g. GNT Casting Tour, Popstars Final), stand alone events (e.g. Starlight Express, Lindenberg Musical)
Start of TMA (a talent management platform) with Peter Olsson, PerformancePlus, to support and market external artists (actors, singers, talkmasters) as well as ProSiebenSat.1 faces
Artist manage-ment „classic“ music business 1. 2. 3.
38
Strategic initiatives 2010
Thomas Ebeling, CEOOur market has great fundamentals
Human beings need and look for entertainment
and campfire experiences
40
TV advertising can have an attractive future
•
Price pressure will continue but „quality“ considerations will re-emerge
•
Market will correlate with recovery of GDP development
•
TV + online is the winning future media mix, but TV remains key medium;
print loses ground
•
Sooner or later stronger need for TV advertising to support new products
will emerge again, like the internet, financial services or
the mobile phone industry
•
“Individualized” targeting, also on TV, could become a game changer and justify
higher prices (mid-term)
Opportunities in the market
Rebound of TV advertising market
Consumers are willing to pay for audiovisual entertainment
Huge need for (concierge) services
42
What does it take to win tomorrow in TV?
Strong Free TV core business
Substantially more diversified revenue sources
High-efficiency, best-practice organization
3
2
1
Strategic initiatives 2010
Complementary stations with content attractive for advertisers
Sales excellence with new sales & marketing tactics
and innovations
TV brands and content anywhere on all platforms
New income from hybrid-pay and paid content
Achieve financial targets
Create high-performance organization
Attractive, cost efficient content suited for linear consumption
Diversified entertainment portfolio
in adjacent markets Cost leadership
Strong Core TV Business Substantial, Diversified Revenue Sources
High-Efficiency,
Best-Practice Organization
44
New sources for growth (1/2)
Advertising
Pay TV on all platforms
New business (non-TV customers); new ad formats; increase ad break reach; explore product placement; push online sales; test personal / regional targeting
Major contribution in Germany not before 2013/14; international continues to grow distribution income
Enhance quality of service, e.g. downloads on maxdome possible since February; HD programs
AdVoD; membership fees; transaction income, paid content
Red Arrow Entertainment Group
Develop M4RS deals; implement more projects and special initiatives
sixx (Germany); FEM 3 (Hungary)
1. 2. VoD 3. Online 4. Content production 5.
Media for revenue / equity 6.
New channels 7.
360-degree communication; cross-media advertising services; new clients for new channels
AdFactory 8.
SAT.1 web stick, SevenGames web stick; new apps (Lost, GNTM)
Mobile / Apps 9.
Establish online platform; line-up new artists
Expand portfolio, launch SevenGames.de in France / England, white label solutions
GNTM-licensing with new product line (C&A, Procter & Gamble, Ferrero);
Playboy: collect intern. top brands; new cooperation with Desperate Housewives
Start TMA, a talent management platform; sign new artists
Games 10. Merchandising 11. Music 12. Events 13. Artist management 14. Trademark fees 15.
TV event concepts (GNTM casting tour, POPSTARS final etc)
Continue to close gaps & identify new sources (“Leerträgervergütung”)
Idle library
16. Unlock value of unused program stock
Expand intern. distribution
17. Intensify program sales
46
Key take aways
2009 goals (over) achieved
Challenging markets - opportunities exist
Competitive strategy - concrete actions for 2010
2010 will be another transition year with continuous focus
on cost management and a renewed emphasis on efficiency,
48
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.
