2009 Annual Press Conference

Transcription

1 2009 Annual Press Conference 1

2 2009 at a glance Thomas Ebeling, CEO 2

3 Good results in a tough environment % +6.0% +1.8% All earnings figures above the prior year: net income of EUR 144.5m Recurring EBITDA EUR 696.5m Good Q4 revenue performance EUR 880.5m Revenues % -9.6% +0.7%pt Recurring costs reduced by Good ratings in German core market EUR 2,760.8m EUR 221.3m 30.1% Figures 2009 preliminary and unaudited excl. CMore. Deconsolidation of CMore in November Recurring costs: Total costs excl. D&A and non-recurring (exceptional) items. 3

4 2009: Major objectives achieved Financial goals achieved Profitability strengthened Efficiency goal exceeded Improved audience market shares Ratings in core market Germany clearly improved Denmark, Netherlands, Austria, Romania and Finland above previous year s level Ad shares in core market increased Ad share in German market increased Good acceptance of ad sales model New sales subsidiary SevenOne AdFactory founded 4

5 2009: Major objectives achieved Revenue diversification Further expansion of music business Revenue increase of gaming and online video advertising, but 9Live/Teletext declining ( ) New growth initiatives defined SevenOne AdFactory for innovative cross-linked advertising campaigns Successful launch of media for revenue share deals Content and distribution subsidiary RedArrow launched Launch of new and leaner German TV organization Setup of the new organization in Munich in July

6 New Member of the Executive Board: Dan Marks Executive Board Member and Chief New Media Officer Starts May 1st, 2010 Dan is a high profile international media expert Excellent track record: British Telecom, Universal, TV3 (Russia) 6

7 Financials 2009 Axel Salzmann, CFO 7

8 Q Group: profitability improved in a tough market environment / Group revenues up Revenues In EURm Recurring costs* In EURm Recurring EBITDA** In EURm % % % Q Q Q Q Q Q Q Q Q adj. CMore adj. CMore adj. CMore Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November *Total costs excl. D&A and non-recurring items. **EBITDA before non-recurring (exceptional) items. 8

9 2009 Group s earnings situation: cost management takes positive effect Revenues In EURm Recurring EBITDA* In EURm , , % 2, % adj. CMore adj. CMore Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November *Recurring EBITDA: EBITDA before non-recurring (exceptional) items. 9

10 2009 Recurring costs: EUR 221.3m cost reduction, target of EUR 200m exceeded Recurring costs* In EURm Non-recurring expenses In EURm , , % 2, adj. CMore Depreciation and amortization In EURm ** adj. CMore adj. CMore Figures 2009 preliminary and unaudited. *Total costs excl. D&A and non-recurring expenses. Consumption of programming assets down by EUR 112.9m to EUR 1,068.6m (2008 adjusted for CMore). **Incl. impairment on SBS goodwill of EUR 180m and write-down of EUR 29.8m on property in Berlin 10

11 2009 Net income reconciliation: net income significantly up In EURm adjusted for CMore Net result (after minority interests) Purchase price allocation (after tax) Currency valuation/other Goodwill impairment -/ Underlying net income : Net income and underlying net income improved, early response on costs with significant positive results 2008: Net income 2008 reflects a non-cash SBS goodwill impairment charge of EUR 180.0m Figures 2009 preliminary and unaudited. 11

12 2009 Segments: our German stations outperformed the TV ad market, lower advertising revenues due to macroeconomic conditions German-speaking Free TV External revenues, in EURm International Free TV External revenues, in EURm Diversification* External revenues, in EURm % -11.6% 1, , % Recurring EBITDA, in EURm +12.6% Recurring EBITDA, in EURm % Recurring EBITDA, in EURm % Figures 2009 preliminary and unaudited. Recurring EBITDA: EBITDA before non-recurring (exceptional) items. *Deconsolidation of CMore in November Diversification figures for 2008 excl. CMore. Revenue contribution of CMore in 2008: EUR 132.0m, recurring EBITDA contribution: EUR 17.7m. 12

13 2009 Debt and liquidity: good liquidity, reduction of net debt Debt facilities In EURm Net debt down by EUR 112m to EUR 3.295bn Leverage (net debt/ltm recurring EBITDA) improved to 4.7x (2008: 5.05x)* ,771 Term Loans B 1,800 Term Loans C 600 RCF July 2014 July 2015 July 2014 EUR 737m of cash on balance sheet EUR 67m of additional undrawn liquidity under the RCF Operating cash flow of EUR 1.478bn (2008: EUR 1.359bn)* EUR 1.227bn invested in programming assets (2008: EUR 1.397bn, 2008 excl. CMore: EUR 1.298bn) Dividend proposal of EUR 2.1m for 2009 Management will propose the payment of the minimum dividend of EUR 0.02 to the preference shareholders. No dividend to the common shareholders. Respective shareholder resolution to be taken at the AGM held on June 29, Dividend payment date is June 30, Figures 2009 preliminary and unaudited. Deconsolidation of CMore in November *2008 incl. CMore 13

14 Summary 2009: good results in a difficult environment Revenues Generally difficult year but with improving trend in Q Cost base Good performance across the group Cost savings target (EUR 200m) exceeded Recurring EBITDA /net income Good result given challenging market environment Net debt/ liquidity Net debt reduced, leverage down to 4.7x Dividend Dividend proposal for fiscal 2009 of EUR 0.02 per preference share 14

15 Viewer markets 2009 Andreas Bartl, German Free TV Thomas Ebeling, CEO 15

16 German Free TV business: ratings improved pts TV audience shares in Germany In percent, 2009 vs ProSiebenSat.1 Group SAT.1 ProSieben kabel eins N24 Q4: Basis: All German TV households (Germany + EU), 24 hours (Mon-Sun) years. Source: AGF/GfK Fernsehforschung / TV Scope / SevenOne Media Audience Research. 16

17 German Free TV business: successful launch of new free TV organization in July 2009 Good business and program performance in the challenging year 2009 Central scheduling co-ordination leading to optimized channel complimentarity and ratings success over 30% German TV stations SAT.1, ProSieben and kabel eins under one roof in a new structure in Munich N24 and SAT.1 editorial departments stay in Berlin New television for a new decade! Enhanced efficiency and lower costs by centralizing processes Create synergies through comprehensive use of functions Full centralization of programming departments for optimized use of creative forces Commitment to public function of information on TV, need to optimize news 17

18 Programming outlook 2010 SAT.1 The major brand for modern family TV Concentrates on its core values as a popular family channel First schedule optimizations in effect, e.g. weekend Top line up of SAT.1 original movies, US feature films and US series ( Die Grenze, Crime Sunday ) First formats of the new program strategy to be launched beginning in April, e.g. German series, Perfect 10 ProSieben The entertainment brand No.1 for the young media generation New, successful US series like Vampire Diaries, Flash Forward and The Good Wife Strong events with the new season of Germany s next Topmodel by Heidi Klum and Stefan Raab events Top-Blockbuster line up 18

19 Programming outlook 2010 kabel eins - Exciting, authentic, reliable and informative Continues its dynamic success story Powerful feature film line up Successful sitcoms to be extended in daytime N24 Germany s leading news channel Solid and successful in the very competitive news and documentary segment Discussion on economic viability of news channel in group structure to be closed in H1 19

20 German Free TV business: We are fully aware of our social responsibility Full Service Program Status is significant for us News in ProSieben, SAT.1 and kabel eins are indispensable Information content covers 25 to 36 % of the program schedules Channel obligations (Regional Windows, Third Party Programs) are accepted but tie up 6% of program costs Our programs shape public opinion and social values. Journalistic diligence is a matter of course for us. Our documentary programs, reports and fictional programs create awareness about critical topics and actively promote social integration. Television is a key element of public culture. ProSiebenSat.1 programs have public value also besides classic news output Some Examples: Kerner, Galileo, Abenteuer Leben täglich Wissen Seven productions from German Free TV stations are actual nominated for Adolf Grimme Prize, thus Galileo Spezial: Karawane der Hoffnung within the categorie information and culture 20

21 Outlook 2010 new station launches sixx Germany s only female channel will start in May 2010 Available for reception in about 14m German households First run of US series, servicetainment, feature films and movies Special sales model for attracting non TV advertisers FEM3 launched on January 1, 2010 in Hungary New special interest channel for women Targets attractive audience for advertisers Extension of multi-channel strategy 21

22 International viewer markets 2009 generally satisfactory performance NL/ Belgium Netherlands 27.3% 0.2%pt Belgium 16.2% 1.8%pt Nordic Sweden 15.1% Norway Denmark Finland 12.9% 15.3% 2.3% 0.0%pt 0.3%pt 0.8%pt 1.1%pt CEE Hungary 22.1% 2.5%pt Romania 7.3% 0.4%pt Austria/ Switzerland Austria 17.3% 1.6%pt Switzerland 16.2% 1.4%pt Figures refer to extended prime time audience shares / A+CH: 24 hours. The Netherlands: SBS 6, NET 5, Veronica; target demographic years / Belgium: VT4, vijftv; target demographic years; Belgian figures refer to the region of Flanders / Hungary: TV2; target demographic years / Romania: Prima TV, Kiss TV; target demographic years; Romanian figures are based on the urban population. Figures refer to extended prime time audience shares. Sweden: Kanal 5, Kanal 9; target demographic years / Denmark: Kanal 4, Kanal 5, 6 eren, The Voice; target demographic years in commercial universe / Norway: TV Norge, FEM, The Voice; target demographic years / Finland: The Voice/TV Viisi; target demographic years. 22

23 Rich content pipeline overview of our recent programming deals Studio deals 2009/2010 Twentieth Century Fox (D, A, CH) Sony Pictures International (D, BE) The Walt Disney Company (D, RO) Monarchy/New Regency (D, A, CH, BE, NL) Tele München Gruppe (D) CBS International (NL, BE, RO, HU) NBC Universal (HU) New sport deals 2009 UEFA Champions League (A, HU) UEFA Europa League (A, CH) ProSiebenSat.1 has long term contracts with nearly every major studio. Business relations with programming suppliers further expanded in

24 Major trends for programming Lean back / TV as a camp fire experience Lighthouses supply viewer orientation and structure Non-linear usage will increase Interactivity increasingly important Parallel and complementary usage of TV and online increases Social communities becoming key reference point for consumers /3D Viewers visual experience needs to be enhanced Low threshold to be fascinated by great programs 24

25 Sales 2009 Thomas Ebeling, CEO 25

26 German sales performance 2009: ProSiebenSat.1 outperforms market, good performance in Q4 FY gross advertising market 2009 vs. 2008, in EURm Q gross advertising market Q vs. Q4 2008, in EURm +2.9% , , % , % 4, , , % 1, , Total TV ad market SevenOne Media 0 Total TV ad market SevenOne Media Source: Nielsen Media Research. SevenOne Media incl. 9Live 26

27 German ad share performance 2009: market share gains in 2009, ProSiebenSat.1 strengthened leading competitive position TV gross ad market share In percent, 2009 vs pts -2.3pts pts -0.4pts +0.8pts SevenOne Media IP Germany El Cartel Media Public stations Others Source: Nielsen Media Research. SevenOne Media incl. 9Live. 27

28 Sales performance in three biggest international markets 2009 Gross TV Advertising 2009, in EURm vs 2008 The Netherlands Sweden Hungary % 3, , % 1, , % 1, , % % 1, , % Market P7S1 Gross TV Advertising Q4 2009, in EURm vs Q The Netherlands Sweden Market P7S1 0 Hungary Market P7S % 1, % % % % % Market P7S1 0 Market P7S1 0 Market P7S1 Source: Hungary TNS MI, rate card prices/ Sweden: SIFO Reklammätningar / The Netherlands: Nielsen Media Research. 28

29 International ad share performance 2009 NL / Belgium Netherlands increased ad share Modest decrease in Belgium Nordic Small decrease in Sweden Norway slightly improved ad market share Denmark clearly up Finland increased ad shares* CEE Slightly decreasing ad share in Hungary Improvement in Romania Share of Advertising in Netherlands, Belgium, Sweden, Norway, Denmark, Hungary and Romania refers to net share of advertising. *Start of TV Viisi in Q

30 Germany 2009/2010: development of major advertising categories Gross TV advertising of top 10 TV categories 2009 vs 2008, In EURm 2009 vs 2008 Trend 2010 Gross TV Advertising 7,277 9, % Sector weight Food 1, % 18.8% Cosmetics and Toiletries 1, % 13.1% Media and Publishing % 9.2% Motor Vehicles % 6.9% Beverages % 6.9% Trade and Shipment % 6.8% Telecommunication % 6.1% Finance % 5.5% Pharmacy % 5.1% Business Services % 5.0% Source: Nielsen Media Research. Trend: Jan. 1 - Feb. 21,

31 Outlook Net TV ad market 2010: research institutes expect stabilization, but visibility remains low TV ad investments (net) Change 10 vs 09 in percent, at current prices WARC ZenithOptimedia Germany Austria CH NL Belgium Sweden Norway Denmark Finland Hungary Romania Bulgaria Source: WARC: European Advertising & Media Forecast December 2009, SevenOne Media, as at 12/22/2009. Source: ZenithOptimedia: Advertising Expenditure December 2009, SevenOne Media, as at 12/15/

32 Diversification 2009 Dr. Marcus Englert, New Media 32

33 Online and video strategy pay off 19.27m unique users on ProSiebenSat.1 s networld ProSiebenSat.1 s core online portfolio is among Top 5 online marketers in Germany Extraordinary growth of online video views from 103.4m (2008) up to 149.3m in 2009 maxdome is the leading video-on-demand portal in Germany with 25,000 titles and approx. 200,000 active users As of February 2010, maxdome offers new service to download and buy videos 33

34 Games ProSiebenSat.1 plays on all platforms Games business with double digit revenue growth in 2009 B2C revenues with box products (Nintendo DS, Nintendo Wii, PlayStation and PC) and international online platforms (item selling, in-game-advertising) With SevenGames.de ProSiebenSat.1 has started the first social gaming platform of a media company in Germany. Belgium, the Netherlands, Norway and Sweden followed step-by-step. Initiatives 2010 International rollout will be expanded in 2010 with French and English version to become leading social gaming platform in Europe Relaunch of SAT1Spiele.de starting in Q ProSiebenSat.1 launches 13 game titles in

35 Mobile services ProSiebenSat.1 has become a leading mobile player for audiovisual content in Germany 15 brands available as mobile websites and apps videos delivered to 14 mobile providers in the past 12 months video views per month across all mobile properties apps downloaded in the past 12 months 35

36 Music business with double digit revenue growth in 2009 portfolio with 24 artists, gold and platinum with 11 artists 36

37 starwatch Music 2010 besides extending key business, starwatch enters two new markets classic music business New gold artists already signed for 2010 Scorpions, Kim Wilde, Katherine Jenkins (already very successful in the UK with five Nr.1 albums) and Gregor Glanz (promising newcomer), future winner of Unser Star für Oslo Live entertainment starwatch enters two adjactent markets Build network with live entertainment companies Three pillars: starwatch artists live (e.g. Peter Maffay, Westernhagen, Scorpions), spin-off/new TV event concepts (e.g. GNT Casting Tour, Popstars Final), stand alone events (e.g. Starlight Express, Lindenberg Musical) Artist management Start of TMA (a talent management platform) with Peter Olsson, PerformancePlus, to support and market external artists (actors, singers, talkmasters) as well as ProSiebenSat.1 faces 37

38 Strategic initiatives 2010 Thomas Ebeling, CEO 38

39 Our market has great fundamentals Human beings need and look for entertainment and campfire experiences Customers need advertising to sell products 39

40 TV advertising can have an attractive future Price pressure will continue but quality considerations will re-emerge Market will correlate with recovery of GDP development TV + online is the winning future media mix, but TV remains key medium; print loses ground Sooner or later stronger need for TV advertising to support new products will emerge again, like the internet, financial services or the mobile phone industry Individualized targeting, also on TV, could become a game changer and justify higher prices (mid-term) 40

41 Opportunities in the market Rebound of TV advertising market Consumers are willing to pay for audiovisual entertainment Huge need for (concierge) services Integrated interactive offerings can demand a premium 41

42 What does it take to win tomorrow in TV? 1 Strong Free TV core business Substantially more diversified revenue sources 2 3 High-efficiency, best-practice organization 42

43 Strategic initiatives 2010 Substantial, Diversified 1 Strong Core TV Business 2 Revenue Sources 3 High-Efficiency, Best-Practice Organization Attractive, cost efficient content suited for linear consumption TV brands and content anywhere on all platforms Achieve financial targets Complementary stations with content attractive for advertisers New income from hybrid-pay and paid content Create high-performance organization Sales excellence with new sales & marketing tactics and innovations Diversified entertainment portfolio in adjacent markets Cost leadership 43

44 New sources for growth (1/2) 1. Advertising New business (non-tv customers); new ad formats; increase ad break reach; explore product placement; push online sales; test personal / regional targeting 2. Pay TV on all platforms Major contribution in Germany not before 2013/14; international continues to grow distribution income 3. VoD Enhance quality of service, e.g. downloads on maxdome possible since February; HD programs 4. Online AdVoD; membership fees; transaction income, paid content 5. Content production Red Arrow Entertainment Group 6. Media for revenue / equity Develop M4RS deals; implement more projects and special initiatives 7. New channels sixx (Germany); FEM 3 (Hungary) 8. AdFactory 360-degree communication; cross-media advertising services; new clients for new channels 9. Mobile / Apps SAT.1 web stick, SevenGames web stick; new apps (Lost, GNTM) 44

45 New sources for growth (2/2) 10. Games Expand portfolio, launch SevenGames.de in France / England, white label solutions 11. Merchandising GNTM-licensing with new product line (C&A, Procter & Gamble, Ferrero); Playboy: collect intern. top brands; new cooperation with Desperate Housewives 12. Music Establish online platform; line-up new artists 13. Events TV event concepts (GNTM casting tour, POPSTARS final etc) 14. Artist management Start TMA, a talent management platform; sign new artists 15. Trademark fees Continue to close gaps & identify new sources ( Leerträgervergütung ) 16. Idle library Unlock value of unused program stock 17. Expand intern. distribution Intensify program sales 45

46 Key take aways 2009 goals (over) achieved Challenging markets - opportunities exist Competitive strategy - concrete actions for will be another transition year with continuous focus on cost management and a renewed emphasis on efficiency, people management and most importantly revenue growth 46

47 We love to entertain and inform you anytime, anywhere 47

48 Disclaimer This presentation contains forward looking statements regarding ProSiebenSat.1 Media AG ( ProSiebenSat.1 ) or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1 s or ProSiebenSat.1 Group s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by ProSiebenSat.1 with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. 48