ProSiebenSat.1 Media SE Our reSPOnSibility Public Value and Sustainability Facts & Stories 2016 ProSiebenSat.1 Group Public Value and Sustainability 2016 Dear Readers, For ProSiebenSat.1, being successful not only means increasing our financial results in a sustainable manner and growing dynamically. It also means consis- tently enhancing the Group’s ecological and social performance. We are aware of our corporate and social responsibility and see it as a holistic challenge. We want to be a reliable partner in the capital market for our shareholders, who are key stakeholders, and benchmark our performance against trans- parent and concrete targets. At the same time, we pay out between 80 % and 90 % of underlying net income as a dividend each year. We offer our employees a dynamic working environment with lots of creative lee- way, family- friendly working conditions and performance-based remune- ration models. Since 2016, we have also given them a greater share in the Company’s success via the MyShares program. We do this because their ta- lent, their creativity and their passion make ProSiebenSat.1 one of the most successful media companies in Europe – and ensure our competitiveness in the future. It is also thanks to their dedication that ProSiebenSat.1 Group is able to perform its duties in society and for society. In this sustainability report, we will therefore present in detail what the interplay between responsible corpo- rate governance and public engagement looks like at ProSiebenSat.1 – and how the Group uses its reach to give relevant social issues a platform via »We are aware of our our public value activities. In addition, we will inform you about all significant non-financial aspects and the sustainability management of ProSiebenSat.1. corporate and social responsibility.« Yours Thomas Ebeling CEO of ProSiebenSat.1 Media SE Facts & Stories 2016 Our Responsibility Public Value 28 Governance and Compliance 01 The ProSiebenSat.1 Group 06 Professional Athletes Up Close 29 Digitalization and Innovation 02 Corporate Strategy and Sustainability 11 Online Harassment 30 Climate and Environmental Protection 16 Leaving the Big City Behind for a Farm 31 Employees and Diversity 22 »I have so much I want to share with the world« The digital version additionally provides detailed information on all Online references areas of action and includes the assurance report as well as the GRI index. http://sustainability-report2016.prosiebensat1.com Further information and publications can be found at http://www.prosiebensat1.com/en/sustainability ProSiebenSat.1 Group Public Value and Sustainability 2016 ProSiebenSat.1 Group ProSiebenSat.1 Group is based in Munich/Unterföhring ProSiebenSat.1 has also built up a successful e-commerce and is one of the most successful independent media business of digital platforms in recent years, with brands companies in Europe with a strong presence in the TV and such as Verivox, Parship and Flaconi, which is now one of digital market. The Group is growing dynamically, with the Group’s most important growth drivers. This broad- consolidated revenues increasing by 17 % to EUR 3,799 casting, digital entertainment and commerce portfolio is million in 2016 (Q1 2017: EUR 910 million). At the same supplemented by Red Arrow, an international production time, recurring respectively adjusted EBITDA increased and distribution network. With Red Arrow Entertainment by 10 % to EUR 1,018 million (Q1 2017: EUR 188 million). Group, the Company is represented with 19 companies in seven countries. Thus, ProSiebenSat.1 has a broadly Advertising-financed free TV is the Group’s core business. diversifi ed revenue and earnings base. In October 2016, The station family comprising SAT.1, ProSieben, kabel ProSiebenSat.1 once again increased its mid-term growth eins, sixx, SAT.1 Gold, ProSieben MAXX, and kabel eins targets, and expects to increase its revenues by EUR 2.15 Doku is the Number 1 in the German audience and TV billion to around EUR 4.5 billion by 2018, compared to 2012. advertising markets. The Group has tapped into an ad- ditional attractive business area through the distribu- ProSiebenSat.1 Group had 6,054 employees on average in tion of its television channels in HD quality. At the same 2016 (Q1 2017: 6,461 employees). The ProSiebenSat.1 Media time, the Group success fully networks the wide reach of SE share is traded on the stock exchanges in Frankfurt and its TV business with a strong digital unit. Already today, Luxembourg. In March 2016, it became the first media ProSiebenSat.1 is Germany’s leading video marketer company to be included into the leading DAX index. on the Internet and with maxdome or Studio71 one of the most successful providers of digital entertainment. Key Figures 2016 REVENUES EARNINGS DIVIDEND FOR 2016 EUR 3.799 BILLION EUR 1.018 BILLION EUR 1.90 of revenues were generated by of recurring EBITDA was reached by the Group were paid out by ProSiebenSat.1, continuing ProSiebenSat.1 in financial year 2016. in 2016, 10 % more than in the previous year. its earnings-oriented dividend policy. REVENUE TARGET 2018 SHARE OF ADVERTISING HR STRATEGY EUR 4.5 BILLION 42.7 PERCENT 6,054 EMPLOYEES ProSiebenSat.1 aims to increase consolidated ProSiebenSat.1 is the leader in the The Group is one of the most revenues by EUR 2.15 billion in 2018. German TV advertising market. attractive employers in Germany. Revenues by segment Revenues by region in percent, 2015 figures in parentheses in percent, 2015 figures in parentheses Content Production & UK 1 (1) Scandinavia 4 (1) Broadcasting Global Sales 10 (8) Austria/Switzerland German-speaking 7 (8) 58 (66) Digital Entertainment Germany 12 (11) 78 (84) USA 10 (6) Digital Ventures & Commerce 20 (14) 01 ProSiebenSat.1 Group Public Value and Sustainability 2016 Corporate Strategy and Sustainability We are using the opportunities of a changing market Since the report was published, we have further enhanced environment to secure the Group’s dynamic and profitable our sustainability management and the reporting pro- growth in the long run. At the same time, ProSiebenSat.1 is cesses in the Group and increased the transparency fulfilling its corporate responsibility, as we are convinced of our sustainability performance. We have therefore that a successful corporate strategy cannot be measured defined concrete measures that we have already imple- by financial results alone. As a media company, we make mented or will implement in the second half of 2017. For an important contribution to the dissemination of infor- example, we have systematically expanded the content of mation and diversity of opinion in society. Simultaneous- the Sustainability Report 2016 and broadened the scope ly, our philosophy as an employer is to serve the individual of the review to include additional selected non-financial interests of our employees. These are two examples of how aspects. Selected disclosures and key figures were sub- we consider the needs of our internal and external stake- jected to an independent audit with limited assurance by holders in our corporate activities. KPMG AG Wirtschaftsprüfungsgesellschaft. Such audits are based on the relevant ISAE 3000 and ISAE 3410 Companies that identify sustainability-related risks and standards. In parallel, the Group is working on enhanc- opportunities at an early stage can hold their own on ing the sustainability organization and the corresponding competitive markets. In this context, we define sustain- governance structures in the Group. able corporate activity as a holistic approach to secure the economic as well as the ecological and social perfor- Together with the Annual Report 2016, the Sustainability mance of our Group. In September 2016, ProSiebenSat.1 Report 2016 provides a comprehensive description of Group published a separate report for the first time deal- the performance of ProSiebenSat.1 Group on the basis ing with these three dimensions of sustainability and tak- of financial and non-financial information. This sustain- ing the key aspects of sustainability into account. It was ability report complies with the core option of the guide- titled “Our Responsibility — Public Value and Sustainabili- lines of the Global Reporting Initiative (GRI) in the fourth ty at ProSiebenSat.1 2015/2016”. generation (G4). Dimensions of sustainability and action areas Materiality Assessment Through internal workshops, surveying people in posi- tions of responsibility in various specialist departments, analyzing the results of research by our own research Economy department, dialog with individual interest groups and Digitalization and Innovation observing the regulatory framework of our existing re- porting system, we comprehensively identified potential Governance issues and stakeholders and narrowed down the universe and Compliance of topics to material matters. As a next step, we arranged the issues along our individual value chain and defined priority criteria. The aspects thus derived are synthesized Public Value into five areas of action. Environment Society Climate and Employees Environmental and Diversity We carried out our first materiality assessment at the end Protection of 2015. In recent months, we have validated and reviewed the identified aspects in connection with the enhance- ment of the reporting processes, the preparation for the statutory reporting and auditing obligation with regard to 02 ProSiebenSat.1 Group Public Value and Sustainability 2016 Areas of action Public Value Governance and Digitalization Climate and