Sevenventures
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SevenVentures Company Presentation September 2012 Agenda Who we are Value added services Case studies Team 2 We are a part of ProSiebenSat.1 Media AG – the leading broadcaster in Europe • 10 countries Northern Europe • 148,000,000 viewers • # 1 Commercial radio • 68,000,000 TV HHs network in Finland • 5,000 FTEs • # 2 Commercial radio network in Denmark, • € 3.0bn in sales (2010) Norway and Sweden • # 3 Free TV company in Denmark, Finland, Norway Germany and Sweden • # 1 Free TV company (approx. 30% audience share) CEE • # 1 Provider of VoD • # 1 Commercial radio • # 4 Online network network in Romania • # 2 Free TV company in Hungary • # 3 Free TV company in Romania 3 With our highly successful TV station brands SAT.1, ProSieben, kabel eins and sixx we are the leading marketer for audio–visual media in Germany TV-activities in Germany SAT.1 kabel eins ProSiebenSat.1 is No. 1 in the First class football and TV Best movies and television • Outstanding self-produced TV movies, German broadcast premieres of US series and advertising market huge TV events and world-class soccer successful highly rated series Large family channel with target Wide variety of quality programs • Our advertising-funded TV group between 30 and 59 for 25- to 45-year-olds stations SAT.1, ProSieben, kabel eins and sixx cover a Our German broad audience due to their television network complementary programming • Today, we hold a market share ProSieben sixx of about 30% in the Germany We love to entertain you! Germany's female channel TV landscape Largest Hollywood blockbusters and US series and magazines covering latest strongest US series lifestyle, fashion, and beauty trends Market leader among young viewers Programming for the women of today (ages between 14 and 29) (ages between 20 and 39) 4 Our Mission "SevenVentures is your #1 partner for entering the German market or facilitating your growth strategy by combining extensive and unique marketing know-how with highly efficient media investments and services." 5 SevenVentures with focus on three industry cluster Digital Commerce Lifestyle Commerce Health / Beauty Commerce • Digital business models • Mass-market products • Mass-market products • No warehouse risk • Pure online / e-retail models • Marketing / brand-affine • Pure online models • Marketing / brand-affine business models business models • Limited warehouse risk • Limited warehouse risk • No retail / distribution cost Description • No retail / distribution cost Dating Fashion Health Travel Lifestyle Beauty Mobile Living OTC Products Education Food Wellness Customer Acquisition Sustainability Industry segments Industry Other Commerce Enabling Eco-System: Booming and Sugar Ray 6 Multiple value drivers and exit options Revenue building blocks Exit options € Participate in exit 1 proceeds Convert into loyal 2 Equity-driven paying classical income TV customer M4R/E Revenue share Customer driven income 3 Acquire if attractive business and has Minimum strategic fit guarantee-driven income Discontinuation if target 4 below expectations 7 35 companies in current portfolio Digital Commerce Lifestyle Commerce Health / Beauty Commerce Market size 2011 in €bn ~ 7 ~ 12 17 - 19* Selected portfolio companies # of comp. in portfolio 9 15 11 (07/2012) * Including OTC-Pharma and Beauty Source: Solon, ProSiebenSat.1 Media AG 8 New majority acquisitions: preis24.de and TROPO preis24.de TROPO • 60% equity stake in online-based • 90% equity stake in online-based price comparison platform travel player TROPO preis24.de with focus on top deals in mobile & DSL market segment • TROPO to provide complimentary services to existing P7S1 travel • Strategic milestone to establish initiatives and portfolio companies market-leading price comparison platforms/market places 9 Strong growth of Online Commerce & Ventures Deal flow Revenue growth Q2/H1 vs. PY* • 35 active deals Q2 +80% • 35 under negotiation H1 +56% • Target long list: 211 10 SevenVentures will generate its revenue growth from 5 major sources Revenues +154% 2012 M4R/E Market Travel Commerce Ecosystem 2015 places Cluster Cluster Majority investments Clearly defined investment criteria 1 Attractive market segments with double-digit revenue potential 2 Proven business model with strong management team 3 Marketing is Key Success Factor 4 No traditional TV-Media customer 5 Low risk of technological disruption, potential regulations Source: SevenVentures 12 Agenda Who we are Value added services Case studies Team 13 SevenVentures provides a unique advertising platform beyond media investments Attractive Higher reach terms through editorial integration Leader In-house in online performance media agency advertising Booming 14 Our expected Investment Returns Big variety of special Attractive ad formats Higher reach terms through editorial integration Leader In-house in online performance Attractive Terms with tied economics. house In- media agency creative advertising Booming agency SugarRay SevenVentures Participation in Company Performance TV Media Cost Comparison SevenVentures proceeds TV Media costs* 40-60% 40-60% Equity proceeds Cum. Variable proceeds Cum. Minimum guarantee time 1 2 3 … n Media Traditional Media period Post-media Exit investment TV Media costs Equity proceeds Variable proceeds Minimum guarantee Traditional TV Media costs Source: SevenVentures *TV Media cost estimation based on GMV of €10-15mn. 15 SevenVentures offers a great variety of special ad formats Big variety of special Attractive ad formats Higher reach terms through editorial integration Leader In-house in online performance Big variety of special ad formats. house In- media agency creative advertising Booming agency SugarRay Sponsoring Special Creation Exclusive Position Program Sponsoring Cut In Trailer Split Description: Description: Description: Trailer Split Reminder Cut In Opener Closer Ads Program Program Program Ads Program Program Trailer Impact: Impact: Impact: • Higher awareness due to countdown feature • High awareness • High awareness Positioning: • Target group related communication • Additional leverage for billboard ads since no • Between promotion trailer and program Positioning: separate TV spot required • Opener (Closer) at the beginning (end) of Positioning: Pre Split format • During running program • Reminder before/after every commercial Description: break Pre Split Example: Yokebe Program Ads Impact: • Higher reach and awareness Positioning: • Before commercial break within program 16 We have attractive formats for editorial integration to achieve higher reach and awareness than TV spots Big variety of special Attractive ad formats Higher reach terms through editorial integration Leader In-house in online performance Higher reach through editorial integration. house In- media agency creative advertising Booming agency SugarRay Your advantages Selected Formats • Editorial integration of products within broadcasting formats (e.g. GNTM) • Achieves higher reach than conventional advertising since viewers are less likely to switch channels Editorial integration Special "Zalando Room" highlighted in Germany's Next Topmodel © ProSieben/Oliver S. © ProSieben/Oliver S. 17 Our in-house performance agency Booming improves your online sales impact Big variety of special Attractive ad formats Higher reach terms through editorial integration Leader In-house in online performance In-house performance agency Booming. house In- media agency creative advertising Booming agency SugarRay Your advantages Tracking & guidance Conversion optimization State-of-the-art processes • Booming offers scalable digital Tracking and guidance of Sustainable increase of State-of-the-art processes marketing services from cross- customers through the conversion through to ensure success – Top media full-service packages to entire journey from comprehensive range of Affiliate System, S.E.K.T., awareness to action – methods – SEM, SEO, Instant Ad Injection, selected and strongly customized strengthening brands, mobile, social media, Product List Optimizer, online marketing services fostering remarketing, and affiliate marketing, email Track 2 Performance, Blue increasing sales impact marketing, display Proxy, BoomCheck, and • Due to vast expert knowledge advertising, TV, and DRTV Link Weaver Booming is capable to serve virtually every industry • Developed online sales • Supported the "online" • Implemented SEA strategy and conducted sales channel measures (search, display measures over all online • "Online" became the and mobile) channels most relevant source of • Conducted measures by • The top keywords "Kredit", turnovers for KDG native speakers in 14 "Kredite" and "Sofortkredit" countries) reached the top 3 positions in Google 18 We are the clear leader in online media advertising in Germany Big variety of special Attractive ad formats Higher reach terms through editorial integration Leader In-house in online performance Leader in online media advertising. house In- media agency creative advertising Booming agency SugarRay Your advantages InStream advertising InPage advertising 71 T@rgeting Solutions • More than 10.5mn Unique Users • Market leader for • Premium and concept • Predictive behavioral (UU) for InStream advertising InStream advertising in marketing targeting in cooperation (#1 in Germany) Germany • SpecialAd consultants with • Innovation leader • Rentable for Display- • 50.9% market share in gross VideoAdvertising, e.g. und VideoAds VAST, 3rd Party, • Partner of investments for InStream VideoAds Tracking, Vpaid (#1 in Germany) • 25mn UU