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 in relevant segments > 7.0 mn UU > 2.0 mn UU < 2.0 mn UU
19 Our specialized in-house creative agency SUGAR RAY expands our media expertise Big variety of special Attractive ad formats Higher reach terms through editorial integration
Leader In-house in online performance In-house creative agency SugarRay. house In- media agency creative advertising Booming agency SugarRay
Your advantages Consulting Creation Production
• Our creative agency SUGAR RAY • Consulting services to • Creation of award • Production and acts as a full-service provider and ensure successful winning image and Postproduction of offers benefits from consulting to campaigns and special integrated product advertising solutions ad solutions for clients campaigns • Complement of creation to production • Support the process of • Customized creative ProSiebenSat1’s full brand building from the solutions to individual range of services from • Creative media solutions, focused scratch requirements of advertising space to on Advertising, Screen Design, campaign goals distribution On-Air-Promotion, New Media and Branded Entertainment
• As integrated part of P7S1 Media Developed TV Launch Ad solution for Ferrero for Group, SUGAR RAY has got campaign to convert viewers special transition from pro- Commercial for Opel's access to a great network of to online customers gram to commercial break top selling model "Corsa" in GNTM program environment experts in marketing, advertising, promotion, design and artist managements Broadcast Design and Trailer for Sponsorship on TV channel German music Commercial for Ehrmann's "sixx" with host Anastasia award "ECHO" "Almighurt"
20 No matter what your marketing objective is, we know which media to use and how to design the message
Marketing Short-term Mainly sales, Mainly branding, Brand building objective sales increase less branding less sales Case 1 Case 2
TV
Media mix
WWW
TV spot • The spot identifies the specific • The spot raises awareness of message benefits of the product the brand examples • References to sources of supply • It will establish the brand image and prices are given
21 Case examples: Short-term sales increase vs. brand building
Marketing mix TV spot concept
Client is looking for • Core of the campaign was € 1.5mn online • Example: Fitness Products short-term sales push transactional push via SEM / Affiliate / Display • Concept: A trusted Testimonial promotes the for a specific product Advertising to create sales product during the defined • Primary online campaign was supported by a • 20times kickboxing world champion period of the € 2.0mn (net) TV based contest to create Dr. Christina Theiss got the perfect brand fit: marketing campaign awareness and trust in the online offering attractive, authentic, credible, sympathetic and popular • She promotes the benefits of the fitness products Case 1 – and her successes in sports as well as her whole appearance prove it
Client is looking for • Core of the campaign was a € 5mn (net) TV spot • Example: Fitness Products long-term brand to improve awareness and image • Concept: Develop a character to identify with building • TV spot was supported by a special editorial • A man (35), who wants to get in shape again. integration feature in a program relevant for the Once he was an athlete who has gained six target audience pounds and so he is intended to reach his former • Main TV based campaign was complemented by shape (Rocky Story). In 100 slices, we follow his a € 2mn SEM / SEO / Display Advertising effort year: Training and short, emotional moments. You can identify with him, you can even become fond of him. During the training, he always Case 2 remains a human person, with little weaknesses, but most of all…with an iron will.
22 Agenda
Who we are
Value added services
Case studies
Team
23 Proof of concept for different target groups and industries
Business Target TV media Channel Impact description audience in €/month shares
Online • Development of on- Women • Pro7 (60%) platform line shoe retail market (& Men), 5 - 10mn • Sat.1 (20%) shoes + 25 - 45 years • Zalando clear market clothing • Kabel1 (20%) leader in this segment
Food • Pro7 (60%), • Lieferheld on the way Men, delivery 1 - 3mn • Kabel1 (30%) to become market 19 - 39 years service • Sat.1 (10%) leader
• Significant increase in Online 1 - 3mn • Sat.1 (60%) Women, brand awareness and platform (but seaso- • Pro7 (30%) 20 - 60 years access to attractive furniture nal flights) • Kabel1 (10%) target groups
24 Clear market leader through extensive media push
Campaign Impact
Spots addressed different target groups and TV boost through SV product categories We create a category… Target Product audience No organic search for „shoes online“
Women Shoes 25 - 45 years
… and establish a brand-related Women, category name! Fashion 25 - 45 years
Men, Sportswear 25 - 45 years Europe's leader in online shoes / fashion Expected sales of € 300mn in 2011 "Shoes online" as new market segment
25 TV ads immediately lead to Internet traffic
Ad investments and Internet Search Zalando [€ k and Index]
12,000 100
10,000 80
8,000 60 6,000 40 4,000 20 2,000
0 0 Dec 09 Mar 10 Jun 10 Sep 10
Ad pressure TV Google Searches
Almost linear correlation between TV ads and Internet Search
Quelle: Nielsen Media Research, Google Insights for Search
26 Massive sales push with highly optimized campaign
Campaign Impact
• TV media campaign started in June 2011 • Within one year Lieferheld brand on the • Great variety of spots aired: way to become market leader in highly – Clear sales push message competitive food delivery service segment in every spot • Massive growth of Google search entries – Stable target audience: after start of TV media campaign: Search Volume index Men, 19 - 39 years Google Trends – Also event-related spots, e.g. Christmas motive
Examples (screenshots):
Start TV Media invest
2008 2009 2010 2011
Market Leader Lieferheld
27 Seasonal champion by selective flight strategy
Campaign Impact
• Spots only shown between March and • Immediate impact on website traffic: June – strong seasonal focus up to 20 times more visitors immediately • Consistent media campaign: after spot – Brand awareness spots • Competitive advantage due to exclusive with similar motives access to demographically attractive – Target audience: customer segments Women 20 - 65 years "Many customers tell us that they have only contacted us because they have seen our spot on TV. More importantly, many of these Examples (screenshots): customers are over 40 years old. As they do have only limited affinity to eCommerce they would otherwise not have purchased our products at all." (Mr. Holtermann, CEO Gartenmöbel)
28 Set-up of an leading travel cluster started – P7S1 already with strong involvement in online travel assets
Market place for vacation homes (focus on GER)
Leading online hotel price comparison platform
Online travel agency (generalist)
Weather service with strong integration of travel themes
29 Build a profitable and synergic cluster of travel assets
7Travel Comprehensive travel world for the P7S1 target group
Accommo Packaged Car Special Cruises Content M4RS dation tours rental event and other sites deals
Vacation Adventure / Virtual tour Price Online travel Weather Meta homes, special operator comparison agency content search / OTA hotels events
tbd tbd tbd
Strong synergies across travel assets can be achieved
30 wetter.com as central traffic provider for all travel assets
• Strong integration of travel theme with reise.com
• Most successful German online weather service with 12.2m UU p.m. (#9 website)
• Central traffic provider for all travel assets and websites
• Local traffic with great fit to regional offers from travel assets
31 P7S1 entering the virtual tour operator business with tropo
Acquisition of 90% equity stake in July 2012 from Opodo ✔
Perfect starting point for P7S1 travel cluster strategy ✔
Unique and strong asset with experienced management ✔
Immediate access to special offers and distribution channel ✔
32 Synergies can be achieved within four main categories
Traffic TV media and wetter.com as synergies central traffic providers ✔
Bundling Cross-selling of attractive synergies packages and products ✔
Cost Joint marketing and sales synergies efforts for all platforms ✔
CRM Buildup of a collective synergies customer base ✔
33 Build up largest provider of automotive information and transactions
Information portal Market place for Internet dealer for Internet car parts Services / Car for automotives used cars new cars market rental
34 Facts and figures 12Auto Group
88.000 registered Transmission of cars automobile tester on worth € 7.200.000 through autoplenum.de 12Neuwagen.de
1.400.000 Unique User 2.000.000 advertisements per month on on 12Gebrauchtwagen.de autoplenum.de
35 P7S1 best owner in online automotive market
1 Conversion TV with great impact on customer acquisition in the automotive area
2 Scalability Fast scalability of new models through partner solutions
3 Lifestyle TV as „Game Changer“ – cars are emotional products
Proof of Successful build up of own asset 12auto.de as well as insights / benchmarks from 4 Concept existing co-operations and through own expert team
5 Stimulation Engagement leading to bookings from competitors – indirect as well as direct
36 Large revenue potential in 2015 plus upside through anorganic growth (M&A)
Reason why Revenue 2012 (FC) - 2015 [Mio. EUR]
Shift from offline to online in market segment Revenue leading to a large revenue potential 40 potential through 12Auto Group – combined information, 35 M&A services and products along the „automotive“ 30 value chain 25 20 SevenVentures already with strong proof-of- +2.194% concept in building up industry assets and 15 impact of TV media 10 5 Portfolio approach of 12Auto Group offering 0 synergy potential through joint customer base and traffic generation within portals 2012 2015
37 Covus Ventures – build attractive portfolio of digital market places (aggregation and lead generation)
Portfolio Desciption Status
• Software for manage Facebook settings
• Software for PC optimization Founded • Automatic driver update
• Portal for discount coupons • Proven business model Founded • AAA domain
• Intermediation of hotel rooms Hotelsbilliger.de • Better rates than competitors Concept phase • Hidden booking process
38 Invest in low risk scalable market place models with immediate revenues and attractive margins
Fast time-to-market: Covus Ventures to build digital 51% market places for SevenVentures as „extended SevenVentures workbench“ in Berlin Strong entrepreneurial team: Management team with Covus successful track record (e.g. browsergames.de, Ventures freemium.com)
Company 1 Company 2 Company 3 Access to critical know how: Established team with >12 years experience in SEO and performance marketing
Shared Services of Covus Group with Attractive portfolio: Existing business models with performance related compensation immediate revenue scaling potential
Software Online Office development / Marketing (SEO, IT Infrastructure infrastructure programing SEM, Affiliate) Flexible and lean structure: Build new businesses using existing Covus infrastructure (80-90% variable) Dienstleistungen der Covus Gruppe Existing close relationship: Already strong cooperation with Covus in online games sector (browsergames.de)
39 Software monetization through feature item selling and advertising – direct customer access for Covus
Product • Software to manage Facebook security settings • Software for PC optimization and speed up • Automatic driver update
Business Model
• Affiliate provision through item selling
Benchmark • Direct customer access through installation of software on customer‘s PC • US player Advances System Care Free • No goods risk, fast scalability (Iobit) with over 100m downloads • Driver: revenue spilt US / DE, revenue per • Driver Detective with € 35m revenue p.a. download, conversion rate visit / download
40 Agenda
Who we are
Value added services
Case studies
Team
41 Our Team
Jesko Breuer Sascha van Holt Managing Director Head of Venture Investments, Lifestyle Commerce & Member of the Management Board
Lifestyle Commerce Lifestyle Commerce
Tel.: +49 89 9507-8680 Tel.: +49 89 9507-8633 [email protected] [email protected]
• Prior to his current role for SevenVentures Jesko was • Sascha joined SevenVentures at the time of its founding in Managing Director at dress-for-less being responsible for early 2011 Business Development, Finance, IT and Logistics. His area • His previous role was Investment Professional at Waterland of responsibility also included the internationalization of the Private Equity, a leading mid market growth fund with €2.5 dress-for-less Online Designer Outlet business bn. under management. At Waterland, Sascha worked on a • Before that, Jesko held Managing Director positions at number of transactions in various industries various e-Commerce companies including MEXX Europe • Prior to this role, Sascha was Senior Manager Business and the OTTO-subsidiaries Heine Versand and Development at Bertelsmann AG, one of the world’s leading shopping24.de media companies and founded his own business in the media industry
42 Our Team
Claas van Delden Hari Sven Krishnan Managing Director Head of Venture Investments, Beauty & Health Commerce
Digital Commerce Beauty & Health Commerce
Tel.: +49 89 9507-8670 Tel.: +49 172 1335 534 [email protected] [email protected]
• Claas joined SevenVentures in 2012. Before that, he was • Prior to his current role for SevenVentures Hari worked for Managing Director at Holtzbrinck Digital GmbH being Novartis where he held various Senior Management / CEO responsible for the strategic online portfolio of positions in Europe, the US and Emerging Markets Verlagsgruppe Georg von Holtzbrinck • Previously, Hari worked for three years as a consultant at • While Claas worked at Holtzbrinck (2006-2012) he was also McKinsey & Company with focus on Pharma/Healthcare holding supervisory positions at various companies including • Hari studied Pharmaceutical Sciences in Frankfurt am Main MyHammer AG, allesklar.com AG (meinestadt.de) and and took his Ph.D. at the Humboldt University in Berlin bol.com b.v. • Claas initially started his career at The Boston Consulting Group
43