Content Production & Global Sales Jan Frouman, October 10, 2012 | October 10, 2012 Page 1 Red Arrow cordially welcomes you to today's presentation Red Arrow Reel | October 10, 2012 Page 2 Experienced leadership team Jan Frouman Jens Richter Ralf Schremper Group Managing Director Group Director – Group Director - Finance . Oversees all business activities International Distribution . Responsible for all day-to-day and international operations . Oversees all worldwide program financial activities sales . Focuses on driving Group . Launched Red Arrow in 2010 . Launched Red Arrow International strategy and led growth (formerly SevenOne International) 11 17 in 2004 10 . With ProSiebenSat.1 Group . Previously at ProSiebenSat.1 since 2010, previously at . Previously at Beta Film and Bertelsmann and RTL Group and Saban Capital Group Prisma Sports & Media Michael Schmidt John Jongerden Group Director – Group Director - Operations Creative Ops. & Business Development . Responsible for production and sales operations across the group . Oversees all content development . Special focus on operational expansion . Experience in broadcasting, producing, and integration efforts commissioning and development . Previously at FremantleMedia, Endemol and GRUNDY . Previously at BRAINPOOL, RTL and VIVA 21 22 X Years of industry experience | October 10, 2012 Page 3 Red Arrow is already a top-tier global production and distribution group Production & Development Distribution 18 production companies across Sales offices: fiction / non- fiction TV genres . Munich . Los Angeles . Hong Kong Development partners Total revenues 2011 EUR 110m* | October 10, 2012 Page 4 *Revenues entity view (incl. internal and external sales) Outstanding broadcaster relationships across the world’s 1 2 Superior creative talent largest markets 1 Best-in-class sales execution Content line-up securing future track record 33 4 growth and profitability | October 10, 2012 Page 5 Outstanding broadcaster relationships across the world’s 1 2 Superior creative talent largest markets 1 Best-in-class sales execution Content line-up securing future track record 33 4 growth and profitability | October 10, 2012 Page 6 Powerful footprint - 18 production assets across 1 nine territories SE/DK/NO UK (2011-2012) (2010-2012) IL (2012) Hong Kong (2012) USA (2010-2012) BE/NL (2010) D/AU (2004-2010) AUS (2010) Co-production partnership | October 10, 2012 Page 7 Targeting the largest addressable markets in the world: 1 USA, Germany and UK - totaling EUR 23bn volume Global territories for TV content originations (estimated size excl. news and sports rights in EURbn, 2011) 11 Red Arrow production assets across 3 out of 4 largest markets 20% 10% 15% n/ 16.3 a USA ✔ 9.6 GERMANY ✔ 3.6 2.6 UK ✔ USA Japan1 Germany UK % Average market gross margins | October 10, 2012 Page 8 Source: Red Arrow estimates 1Market not addressable for Red Arrow Red Arrow is an established partner 1 for leading broadcasters Country Broadcaster Highlights Betty White‘s Off Their Rockers The Taste Perez Hilton: All Access Das geteilte Glück My Man Can Old Ass Bastards Restless A League Of Their Own Mr. & Mrs. | October 10, 2012 Page 9 Impressive performance: start-up to Top 10 in 1 under 3 years Rank Independent production group1 1 FremantleMedia Red Arrow is: 2 Endemol . established as part of the world’s 3 Shine leading global production groups 4 All3Media . in line with competition, active in both scripted 5 Zodiak and non-scripted content 6 Banijay . geographically positioned in the 7 Eyeworks world’s largest production markets 8 Red Arrow 9 Talpa 10 Tinopolis | October 10, 2012 Page 10 Based on est. 2011 revenues. Source: Red Arrow analysis and company information. 1Defined as working independently regardless of ownership by a broadcaster group or studio. Outstanding broadcaster relationships across the world’s 1 2 Superior creative talent largest markets 1 Best-in-class sales execution Content line-up securing future track record 33 4 growth and profitability | October 10, 2012 Page 11 2 Strengthened creative team: recent top-tier additions Banks Tarver Ken Druckerman Left/Right Left/Right Credits: Credits: . ‘Watch Me Jumpstart’ (award-winning . Critically acclaimed documentary series documentary, MTV) ‘Frontline’ (PBS), ‘Boston 24/7’ (ABC), ‘The Residents’ (Discovery), . ‘True Life’ (MTV, currently in its 13th season) . Feature documentary ‘Ghosts of Attica’ . ‘First Year’, ‘Candidate’, ‘Aftermath of Terror’, and Emmy Award-winning ‘Fight For Your Rights: Take A Stand Against Violence’ Lisa Shiloach Eilon Ratzkovsky July August Productions July August Productions Credits: Credits: . ‘Who’s Still Standing’ (sold to over 30 . Produced some of the most successful films countries incl. NBC) made in Israel: ‘The ‘A’ Word’ (Keshet, sold to Lionsgate . ‘The Frame’ (sold to over 20 countries, incl. Entertainment) US - The CW, Spain and France) ‘Taxi Driver’ (Reshet & YES) . ‘The Million Pound Drop’ (Keshet), ‘1 vs. 100’ ‘The Ran Quadruplets’ (Reshet & YES) (Reshet) | October 10, 2012 Page 12 2 Strengthened creative team: recent top-tier additions Danielle Lux Murray Boland CPL Productions CPL Productions Credits: Credits: . Commissioned award-winning shows incl. ‘A League of Their Own’ (Sky1, season 6 ‘Green Wing’ and ‘So Graham Norton’ for picked up), ‘All Stars Mr. & Mrs.’ (ITV1, Channel 4 series 4 in production) . Won awards for commissions such as ‘Friday . RTS and Montreux award-winning ‘Your Night with Jonathan Ross’ and ‘The Kumars’ Face or Mine’, ‘Infamous Fives’ and ‘Five Go at BBC Dating’ . ‘All Star Mr. & Mrs.’ (ITV), ‘A League of Their Own’ (Sky1)’ Hilary Bevan-Jones Jago Lee & John Farrar Endor Productions NERD Credits: Credits: . ‘Cracker’ (ITV, BAFTA Best Drama Series, . ‘The Big Bid’ (BBC1), adapted by ABC) ‘SuperHuman’ (Channel 4) . ‘State of Play’ (BBC, BAFTA & RTS Best . ‘Second Rise’ (THC), ‘Getting Out Drama Series) Alive’ (Discovery US) . ‘The Girl in the Café’ (HBO, BBC1, Emmy for . ‘Ricky Gervais‘ Life’s Too Short’ Outstanding Made for Television Movie) (BBC2 / HBO), ‘Escape to the Legion’ (Channel 4) | October 10, 2012 Page 13 Original shows with outstanding on-air success 2 across all genres Average audience share vs. channel average +408% +41% +185% +41% +92% +35% +61% +29% +55% +24% +44% +24% | October 10, 2012 Page 14 Source: Group production company reports, ProMefo, ProSiebenSat.1 Format Research Strategic collaboration drives local and 2 global creative success ... Local development . Top-tier creative talent (18 production companies, 5 development partners, central development team) . Best practice sharing . Attractive economics . Hit formats with . Strong collaboration with local multi-season potential pre-sales team . International . Synchronization with channel viability / appeal needs & major market events (MIPCOM/TV, Realscreen, etc.) . IP asset value International content sales | October 10, 2012 Page 15 ... resulting in growing track record of in-house 2 format creation with global traction Formats exported internationally1 Examples: 11 10 1 2010 2011 2012 YTD, August | October 10, 2012 Page 16 1Source: Red Arrow. Refers to owned or exploited formats that have travelled to 2 or more countries in total and have been picked up in the relevant year. Outstanding broadcaster relationships across the world’s 1 2 Superior creative talent largest markets 1 Best-in-class sales execution Content line-up securing future track record 33 4 growth and profitability | October 10, 2012 Page 17 Distribution business positioned to monetize across 3 the entire value chain 3rd-party and original content Complete Sales team 500+ titles 130+ countries value chain Truly international, Sales of ready- Core markets: Free TV / Pay TV / well-regarded mades and France, Italy, CEE, VoD / DVD, etc. sales team formats US, UK, Australia Produced by own Established deal Sales offices in and 3rd-party flow in Latin Munich, Los producers (incl. America, Asia- Angeles, Hong Canada, France, Pacific, Middle Kong US, UK) East, Africa | October 10, 2012 Page 18 Travelling format success achieved with both 3 in-house and 3rd-party properties 45+ 25+ 10+ COUNTRIES COUNTRIES COUNTRIES 40+ 20+ COUNTRIES 10+ COUNTRIES COUNTRIES 25+ 10+ 10+ COUNTRIES COUNTRIES COUNTRIES | October 10, 2012 Page 19 Red Arrow International is one of the Top 10 3 independent distributors Rank1 Distribution company Sales offices 1 BBC Worldwide 11 offices 11 offices 2 FremantleMedia 3 ITV Global Entertainment 5 offices c. 8 offices 4 Endemol (EWD) Red Arrow International 5 Munich, Los Angeles, Hong Kong 6 Zodiak Rights 3 offices 7 Shine 4 offices 8 All3Media n/a | October 10, 2012 Page 20 Based on 2011 gross revenues. Source: Red Arrow analysis and company information 1Cut-off at EUR 50m gross revenues 3 Recent sales successes & broadcaster highlights | October 10, 2012 Page 21 Outstanding broadcaster relationships across the world’s 1 2 Superior creative talent largest markets 1 Best-in-class sales execution Content line-up securing future track record 33 4 growth and profitability | October 10, 2012 Page 22 Content portfolio focused on and in line with 4 global demand % Global market pick-up mix by genre Reality/factual/docu Entertainment shows v v 60% 16% v v 13% 11% Scripted series TV movies | October 10, 2012 Page 23 Recent acquisition of leading factual reality producer 4 in all-important US market Key position in cable market in NYC (balancing Kinetic’s LA presence with more network focus) Diverse client base of leading US broadcasters (VH1,