Broadcasting International P7S1 Nordics Henrik Ravn, October 10, 2012 October 10, 2012 Page 1
Overview of P7S1 Nordics The #1 Nordic entertainment house Trailer October 10, 2012 Page 2
Highlights of P7S1 Nordics Highly attractive 1 2 The challenger with superior growth markets growth and profitability Long-term earnings secured through carriage model 3 3 4 Roll-out of digital growth strategy underway October 10, 2012 Page 3
Highlights of P7S1 Nordics Highly attractive 1 2 The challenger with superior growth markets growth and profitability Long-term earnings secured through carriage model 3 3 4 Roll-out of digital growth strategy underway October 10, 2012 Page 4
1 TV is a driving force in a strong economic environment NORDIC REGION WESTERN EUROPE 1 GDP per capita EUR thousands, 2012E 51 29 TV spend per HH 2 EUR per month, 2011 36 22 Net TV advertising market +6.6% 0.4% CAGR 2008-2012RF Daily TV consumption Growth 2008-2011 +28 min +11 min October 10, 2012 Page 5 1 Average of the respective metrics in the UK, Germany, France, Spain and Italy. Average annual spend on TV per TV HH (calculated as sum of spend on subscription and license fee/tax) divided by TV HH Source: Screen Digest; EIU; Eurodata TV Worldwide; Western Europe from Zenith Optimedia; P7S1
1 Structural growth of TV advertising across all Nordic markets Media mix in net advertising market [in percent] Change in TV ad share (%pts): +3.3%pts +2.9%pts +1.7%pts +2.4%pts (1.2)%pts 60% 50% 54% 43% 53% 44% 67% 56% 48% 40% Print & Other Online TV & Radio 29% 30% 28% 21% 23% 19% 21% 11% 19% 22% 25% 28% 24% 26% 23% 25% 14% 24% 37% 36% 2008 2012e 2008 2012e 2008 2012e 2008 2012e 2008 2012e Western Europe 1 October 10, 2012 Page 6 1 Includes: UK, Germany, France, Spain and Italy Source: Zenith Optimedia
1 Nordic advertising model with superior growth prospects and clear visibility TV ad spend growth [in percent, 2011-14e] Share of ad revenues committed in annual deals [in percent, 2012] 0.6% 74% 4.3% 90% 4.4% 83% 2.9% 78% 0.5% 65% Source: P7S1 Nordics October 10, 2012 Page 7
Highlights of P7S1 Nordics Highly attractive 1 2 The challenger with superior growth markets growth and profitability Long-term earnings secured through carriage model 3 3 4 Roll-out of digital growth strategy underway October 10, 2012 Page 8
2 P7S1 has a strong track record of audience share gains Audience share H1 2008 H1 2011 H1 2012 13.7% 15.9% 18.3% 22.0% 19.3% 21.0% 23.3% 30.1% 33.3% 1.7% 7.8% 9.3% October 10, 2012 Page 9 1 All-day commercial shares; Denmark: 15-50 years, Sweden: 15-44 years, Norway: 12-44 years, Finland: 15-44 years
2 Major drivers are launches and monetization of targeted channels across the footprint Denmark Sweden Norway Finland Launch date Jan 2009 Jan 2012 Feb 2007 Sep 2007 Nov 2010 Jan 2012 Sep 2008 Sep 2012 Target audience Audience share 1 2012 YTD, percent 15-50 12-30 30-59 12-44 12-44 30+ 15-44 6.5 6.3 4.0 4.8² 4.0 2.0 0.9 15-34 n.a. October 10, 2012 Page 10 1 Full day, commercial shares, YTD= Jan-Aug 2012; Denmark: 15-50 years, Sweden: 15-44 years, Norway: 12-44 years, Finland: 25-44 years 2 Audience share without The Voice TV. Source: P7S1 Nordics
2 Unparalleled track-record of creating market-leading local brands Hit Ratio 1 P7S1 Nordic [in percent, 2010-12 (average)] Shows Denmark Sweden Norway 80% 80% 75% 89% October 10, 2012 Page 11 1 Hit ratio is defined as the percentage of programs with a number of viewers that exceeds the channel average; data for H1 2012 Note: Finland is still in start-up phase. Source: P7S1 Nordics
2 Exclusive sports rights through profitable carriage partnerships Premium sports rights Premier League FA Cup /League Cup National Football Copa del Rey Ice Hockey World Championship Finnish Soccer League Spanish La Liga Source: P7S1 Nordics October 10, 2012 Page 12
2 P7S1 Nordic is turning audience share gains into advertising revenue growth P7S1 net TV advertising market share H1 2011 H1 2012 14.8% 17.0% 15.3% 16.0% 24.4% 27.0% 2.3% 3.9% October 10, 2012 Page 13 1 All-day commercial shares; Denmark: 15-50 years, Sweden: 15-44 years, Norway: 12-44 years, Finland: 25-44 years
2 Radio leverages TV brands and operational scale to deliver profitable growth Ad sales Cross-promotion Back office Shared regional ad sales targeting print wallet Unsold TV inventory used to promote Radio and Online Back office integration completed Source: P7S1 Nordics October 10, 2012 Page 14
2 Strong radio leadership position in all markets Commercial listening share [in percent] #1 #1 #2 #2 54.5%¹ ~70% 50.4% 1 ~65% 39.5% 37.7% 30.5% 35.7% 23.0% 21.0% H1 2008 H1 2012 H1 2008 H1 2012 H1 2008 H1 2012 H1 2008 H1 2012 October 10, 2012 Page 15 Note: Share of commercial listening definitions: Denmark 19-50 y/o; Sweden 9-79 y/o; Norway 18-50 y/o; Finland 20-54 y/o ¹Without acquisitions red number representing pro-forma market share after acquisitions (Radio100 in DK; licenses in SWE). Source: P7S1 Nordics
Highlights of P7S1 Nordics Highly attractive 1 2 The challenger with superior growth markets growth and profitability Long-term earnings secured through carriage model 3 3 4 Roll-out of digital growth strategy underway October 10, 2012 Page 16
3 Strong relationships with distributors secured multi-year contract history with all partners P7S1 distribution partners Cable DENMARK SWEDEN NORWAY FINLAND DTT Satellite (DTH) IPTV & others Contracts exist on average ~7 years Source: P7S1 Nordics October 10, 2012 Page 17
3 P7S1 Nordics is the clear partner of choice for its distribution partners Excellent local programs Premium international series and sports rights Well-balanced channel portfolio for all target groups Strong audience share performance Reliable business partner for many years Source: P7S1 Nordics October 10, 2012 Page 18
3 Self-sustaining investment cycle drives revenue and EBITDA growth Competitive distribution environment leads to high willingness of distributors to pay for premium content and attractive channels Sourcing of premium content Investment in new premium content Reinvestment of carriage revenues in new premium content Audience share Premium content generates viewer pull and increase in audience share Carriage revenues Viewer pull helps to generate higher carriage revenues Advertising share Increase in audience share drives increase in advertising share Source: P7S1 Nordics October 10, 2012 Page 19
3 Distinct channel positioning perfectly matches distributors marketing drivers Channel positioning in Denmark female young old Advertisers sweet-spot male October 10, 2012 Page 20 Note: Bubble size = audience share Source: TNS-Gallup; Advantedge; P7S1 Nordics
3 Growth driven by roll-out of Danish model throughout the footprint DENMARK 1 2 NORWAY General entertainment General entertainment Female channel Female channel Male channel General entertainment 2 Male channel General entertainment 1 Strong EBITDA growth in Norway through transfer of Danish model Source: P7S1 Nordics October 10, 2012 Page 21
3 Finland and Sweden are next to migrate to the carriage model 3 FINLAND 3 General entertainment Male channel 4 SWEDEN 4? Female channel missing General entertainment Female channel under repositioning? Male channel missing Source: P7S1 Nordics October 10, 2012 Page 22
Highlights of P7S1 Nordics Highly attractive 1 2 The challenger with superior growth markets growth and profitability Long-term earnings secured through carriage model 3 3 4 Roll-out of digital growth strategy underway October 10, 2012 Page 23
4 Digital strategy clearly defined along four pillars TV OTT Music & radio streaming Exclusive online gaming Movie OTT Capture audiences shifting online Address changing consumption behaviour Attract young audiences Expand existing content to new window Natural extension of our linear TV channels Exclusive partnership in Norway with Telenor Capture growth of streaming market Natural extension of existing radio business The worlds fastest growing entertainment segment Licensing of premium content Perfect content and strategic fit with TV VoD business Ongoing screening of M&A targets October 10, 2012 Page 24 1 Sweden launched in 2009; Denmark and Norway launched in 2011 Source: P7S1 Nordics
4 P7S1 Nordics operates one of the leading VoD platforms in the region Trailer October 10, 2012 Page 25
4 Execution successfully on the way in the three core territories Finland being ramped-up Live: Own ad-based offer Live: Launched in Sep '12 Launch in Q1 2013 Live: TV Norge-Telenor cooperation Live: Launched in Sep '12 Launch in Q1 2013 Live: Own subscriptionbased offer Live: Launched in Sep '12 Launch in Q1 2013 Launch planned for 2014 Roll-out planned in 2014 Launch in Q1 2013 Source: P7S1 Nordics October 10, 2012 Page 26
Further growth potential beyond original CMD 2011 targets Capitalize on momentum in audience share New channel launches in Sweden / Finland Launch carriage model in Finland / Sweden Reach market leadership in Norway Execute digital growth initiatives Source: P7S1 Nordics October 10, 2012 Page 27
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 10, 2012 Page 28