Leveraging business opportunities in TV and distribution Broadcasting German-speaking – TV Germany Thomas Ebeling October 15, 2013 | October 15, 2013 Page 1 We have a strong position in the German TV market Share of viewing Share of advertising [Audience share, in percent] [Gross values, in percent] 32.1 36% 44.0 28.2 owned 25.4 34.1 50% owned 100% owned 100% owned H1 2013 H1 2013 | October 15, 2013 Page 2 Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research Source: Nielsen Media Research ProSiebenSat.1 continues to lead audience share vs. RTL Full day – share of viewing Prime time – share of viewing [audience share, in percent] [audience share, in percent] 28.5 28.3 27.8 27.5 27.3 26.3 25.6 25.3 FY 2012 YTD 2013 FY 2012 YTD 2013 | October 15, 2013 Page 3 Adults 14-49, 2012 (01/01/2012-12/31/2012), YTD 2013 (01/01/2013-10/02/2013),Mon-Sun, full day 3-3 h, Prime Time 20.15-23.00 h, RTL Mediengruppe w/o RTL II Base: all TV households in Germany (D+EU) / Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research ProSiebenSat.1 ahead of RTL Group since March 2013… Audience shares in commercially relevant target group 14-49 years [in percent] 30 29.7 29.329.3 29 28.3 28.2 28.1 27.9 28 27.4 27.4 27.2 27 + 4.7%pts 26.0 27.0 26.8 26.9 26 25 25.5 25.5 24.5 24.6 25.4 24.6 24 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 ProSiebenSat.1 RTL Group | October 15, 2013 Page 4 Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h.; RTL Mediengruppe w/o RTL II Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research …with leading prime time position even expanded since May Audience shares in commercially relevant target group 14-49 years – prime time [in percent] 31 30.5 30 29.4 29.5 29.5 28.5 28.7 29.5 29 28.3 28.2 28.2 28 27 26.3 26 + 6.2%pts 26.0 25.8 25 25.5 24 24.1 22.6 23 23.7 23.3 23.2 22 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 ProSiebenSat.1 RTL Group | October 15, 2013 Page 5 Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 20:15-23:00 h; RTL Mediengruppe w/o RTL II Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research ProSieben with smallest gap ever vs. RTL – SAT.1 with clear leadership vs. VOX Audience shares ProSieben vs. RTL Audience shares SAT.1 vs. VOX Audience shares ad relevant target group 14-49y Audience shares ad relevant target group 14-49y [in percent] [in percent] 18 11 16 10 14 9 12 8 10 0 0 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 | October 15, 2013 Page 6 Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research Our channels hold strong positions in their relevant target groups Relevant target group Audience share in relevant target groups Channel [in years] [YTD 2013, in percent] F/M 14-39 15.9 F/M 14-59 9.5 F/M 14-49 5.6 F 14-39 2.1 F 40-64 0.5 M 30-59 0.4 | October 15, 2013 Page 7 Basis: All German TV households (Germany + EU); YTD: 01/01/2013-09/30/2013; ProSiebenMAXX: 09/03/2013-09/30/2013; Mon-Sun: 3-3h Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research Prime time ratings driven by new blockbuster entertainment shows… The Voice The Voice Kids Got to Dance Promi Big Brother Ø23.4% Ø19.8% Ø15.8% Ø13.9% share of viewing share of viewing share of viewing share of viewing (season 2) (season 1) (season 1) (season 1) | October 15, 2013 Page 8 Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 3-3h Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research …and by Germany’s most successful line-up of US sitcoms The Big Bang Theory How I Met Your Mother Two and a Half Men up to up to up to 21.7% 16.8% 16.4% share of share of share of viewing viewing viewing | October 15, 2013 Page 9 Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 20-23 h Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research Almost stable market shares despite increased fragmentation in digitalization Share of viewing bridge: YTD 09/30/13 vs. YTD 09/30/12 [14-49 years; in percent] ProSiebenSat.1 ProSiebenSat.1 Group rating Group rating 27.7 27.6 0.1 -0.1 -0.0 -0.1 -0.1 -0.0 09/30/12 ARD/ZDF RTL II Sky Basic Pay Digital Public Other 09/30/13 (Sport, CL, Wetten dass...) | October 15, 2013 Page 10 Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 3-3 h Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research ProSiebenSat.1 continues to lead commercial universe share vs. RTL Commercial universe: full day [audience share, in percent] 36.9 36.5 36.7 35.5 P7S1 RTL P7S1 RTL YTD 2012 YTD 2013 | October 15, 2013 Page 11 Adults 14-49, YTD 2012 (01/01/2012-09/30/2012), YTD 2013 (01/01/2013-09/30/2013), only stations >0.5% MA in 2013, public channels only in time zones with advertising Base: all TV households in Germany (GER+EU) / Source: AGF in cooperation with GfK / TV Scope TV remains the central fire place for German households TV market trends – Germany Key facts I TV and TV-related consumption continues to 205 TV viewing Online Video viewing 20 dominate total media consumption min (+1% growth p.a.) (+62% p.a.) min TV remains the central fire place as the everyday Prefer watching Teenagers do not II lean-back medium 78% in company expect a decline in 88% importance of TV New TV screens/hardware make watching TV more HDTVs sold New screens make TV for III 10m stirring – and people invest into new TVs in 2012 even more special 58% Growing VoD market with minimal impact on EUR VoD market 2012 VoD as percent of IV 103m 6% linear TV – but replacing DVD market (+53% p.a.) total video market | October 15, 2013 Page 12 TV continues to dominate media consumption – Online Video as additional growth opportunity… Average daily usage in Germany [in minutes, 14-49 years] 220 TV usage 205 +1% 200 180 Online (w/o 63 +9% 160 Online Video) 140 60 Online Video 20 +62% 40 2013 CAGR 20 (min) 2002-2013 2002 2004 2006 2008 2010 2011 2012 2013 | October 15, 2013 Page 13 Source: SevenOne Media, forsa, Enigma GfK, mindline media Note: Online since 2008 without passive usage; Online Video: ProSiebenSat.1 estimate …supported by strong growth in new devices Average daily TV/video usage in Germany [in minutes, 14-49 years] 240 Total TV/video 203 221 +1.7% 200 160 Traditional TV usage 180 161 -2.2% 120 80 Video over OTT 23 61 (connected TV/PC/ +21.5% 40 mobile/tablet) 2013 2018 CAGR 0 (min) (min) 2013-2018 2013E 2014E 2015E 2016E 2017E 2018E | October 15, 2013 Page 14 Source: SevenOne Media, forsa, Enigma GfK, mindline media Note: Online since 2008 without passive usage; Online Video: ProSiebenSat.1 estimate In the young target group TV is still the lead medium with stable consumption – online growing dynamically Average daily usage in Germany [in minutes, 14-29y] 160 TV usage 146 -1% 140 Online (w/o Online Video) 90 +20% 60 40 Online Video 30 +126% 20 2013 CAGR 0 (min) 2002-2013 2002 2004 2006 2008 2010 2011 2012 2013 | October 15, 2013 Page 15 Source: SevenOne Media/mindline media 2013; Online since 2008 without passive usage Online video usage: SevenOne Media/mindline media 2013; before 2012: ProSiebenSat.1 estimate TV is lead medium in reach and usage Monthly net-reach and usage duration [total population, excl. mobile usage, in percent] 100 TV Total 50 Usage duration 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 [hrs per month] | October 15, 2013 Page 16 Source: AGF/GfK, TV Scope 5.0 (vierwers +3y), Comscore (Internet Home + Work, excl. mobile usage; +6y), Jan 2013, own calculations Wirkstoff TV, SevenOne Media / mindline media 2012 (print +14y) Global OTT players attack market – but most likely cannibalizing physical DVD consumption Key strategies/activities • Youtube with niche content strategy (<USD 200m invest) • Access of OTT • Google Play store as iTunes ‘me-too’ players to fresh exclusive studio • Focus on seamless user experience & selling hardware content unlikely • TV set rumor – Potential deals with Disney/ESPN/HBO for TV subscriptions • Prices for • Bundling deep library streaming of TV/Video content into Amazon Prime exclusive content • Additional TVoD/ EST sales (similar to iTunes) sometimes 5x higher than for • Early 2013 – old CEO announced plans for web-based Pay TV service non-exlusive • Now – new CEO with focus on mobile, less optimistic about Pay TV service • Physical DVD • Streaming service with largest on-demand library and 29m subscribers consumption • Exclusive titles like Mad Men and strong original content like ‘House of Cards’ most likely to be cannibalized • ‘sky Go‘ – mobile/multi-device access to sky content for existing subscribers • ‘skyflix‘ rumor – sky to potentially launch streaming service in Germany | October 15, 2013 Page 17 Market fundamentals in USA and Germany are very different USA Germany Monthly HH spend for TV: USD 951) – Monthly HH spend for TV: EUR 302) – HH TV spend big savings potential through cord-cutting low savings potential through cord-cutting No ad break regulations in USA – Ad breaks highly regulated in Germany – Ad break intensity high intensity (15-20 min/h) and frequency, lower intensity (max 12 min/h) and frequency driving usage of ad skipping Channel fragmentation Basic TV package incl.