pdf 18 MB - ProSiebenSat.1

October 15, 2015
Growing to the next level
Capital Markets Day 2015
Digital & Adjacent
| October 15, 2015 |
| Page 1
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Dr. Christian Wegner
Digital & Adjacent Keynote
| October 15, 2015 |
| Page 2
Key achievements since last year’s Capital Markets Day
Grew Travel
vertical
Established new
verticals
Beauty &
Accessories
Launched assets
internationally
Expanded importer
of choice deals
Closed SVoD
distribution deals
Built
Ad Tech stack
Online
Comparison
>EUR 160m
vertical revenues per year1)
Became #1 MCN
in Germany
| October 15, 2015 |
Broadened US
video footprint
1) External revenues July, 2014 – June, 2015
Note: Etraveli signed with envisaged closing in Q4 2015
| Page 3
Just signed: We acquired a leading European OTA1) for flights
What Etraveli is
Why we acquired it
100%2)
We complement our online travel
vertical and close the blank spot
“flights” in our customer journey
Etraveli enables a profitable, low risk
internationalization of Travel based
on a cost efficient platform strategy
40
countries
1.6m
~1bn
~70m
trips
per year
EUR gross
bookings3)
EUR
revenues3)
| October 15, 2015 |
1) Online Travel Agency 2) P7S1 stake 3) FY 2014 figures
Note: Signed with envisaged closing in Q4 2015
| Page 4
We are continuing our financial success story since 2010
External revenues D&A
[in EUR m]
+36%
CAGR
611
677
Rec.
EBITDA
margin
484
335
172
20101)
225
20111)
~20%
2012
2013
2014
H1 2015
LTM
| October 15, 2015 | 1) 2010 and 2011 revenues adjusted for 9Live and Pay TV revenues
| Page 5
Therefore we raise our CMD target for 2018
We have already almost reached
our 2018 growth target …
… so we raise
our 2018 growth target by EUR 600m
Ext. D&A revenue growth since 2012
Ext. D&A revenue growth since 2012
[in EUR m]
[in EUR m]
H1 2015 LTM
achievement
reported
H1 2015 LTM
achievement
pro forma1)
Current
2018 target
1,200
+600
~570
343 57%
of growth
target
~95%
of growth
target
We are targeting >EUR 1.5bn
in revenues and ≥EUR 280m
in rec. EBITDA in 2018
New 2018 target
+100%
600
600
1) Pro forma including acquisitions of CDS, Virtual Minds,
| October 15, 2015 | Smartstream, Verivox, Etraveli. Etraveli signed with
envisaged closing in Q4 2015
| Page 6
Digital & Adjacent has a unique value proposition
We are the only player
combining significant
commerce assets,
digital audience reach,
understanding of local
communities and premium
video content
to build new businesses and
leverage our TV advertising
power to grow businesses
| October 15, 2015 |
Premium
content
Commerce
platforms
Audience
reach and
understanding
of local
communities
| Page 7
We will reach our new target by continuing our growth strategy …
Push organic growth
Internationalize
Leverage our unique
TV and inter-/intravertical synergies
Take entertainment
and commerce
verticals international
Accelerate growth
through M&A
Participate in global
value creation
Follow a
“String of Pearls”
M&A approach
Selectively invest
in leading funds
globally
| October 15, 2015 |
| Page 8
… across our D&A portfolio of market leading assets
Digital & Adjacent
Market position
Ventures & Commerce
Travel
vertical
Ventures
Digital Entertainment
New
verticals
Beauty & Accessories
#1
#1
(M4R/E)
Leading German #1
media VC investor
#1
AdVoD
#1
#1
PayVoD
Games
Top
Top
34)
35)
Adjacent
Music, Artist Mgmt.,
Live, Licensing
#4
#2
#2
Top
Top
5
3
Online Comparison
Top
5
Top
5
#2
#11)
#12)
#1
#1
#13)
#1
#1
Top
5
Other assets
#1
New
Video Innovation Hub
7NXT
1) Etraveli is the #1 flight player in the Nordics; Etraveli signed with envisaged closing in Q4 2015
2) Studio71 is #1 MCN in Germany, together with CDS top 5 globally 3) Yieldlab is #1 Premium SSP in DACH
| October 15, 2015 |
4) SVoD market Germany, according to Forsa 5) Mobile and PC games publishers in Europe, excluding
direct publishing by developers, P7S1 estimates
| Page 9
We follow clear investment criteria to select our markets
Criteria fit
Selection criteria for verticals
Travel
Beauty &
Accessories
High
Medium
Low
Online
Comparison
Entertainment
n/a
n/a
TV works
Brand-driven
Community-focused
Local hedge
Manageable inventory
n/a
Synergies with portfolio
Structural growth market
Attractive margins
Manageable disruptive forces
| October 15, 2015 |
| Page 10
Macro KPIs are proving the potential of digital businesses
Ventures &
Commerce
Digital
Entertainment
Adjacent
77%
14%
65%
internet
penetration1)
broadband
penetration
>15Mbps2)
smartphone
penetration3)
EUR 1,200
11min
average yearly
eCommerce
spending4)
online video
usage
per day5)
1) Internet users as percentage of German population 2014 Source: emarketer 2015 2) Share of households with internet connection
>15Mbps in Germany Q1 2015; Source: AKAMAI Q1 2015 3) Share of German population 14+ with a smartphone; Source: SevenOne
| October 15, 2015 | Media/Forsa, mindline media 2015 4) Average yearly eCommerce spending per online shopper in Germany 2015; Source: Centre for Retail
Research 5) Average online video usage per day for Germans 14+; Source: SevenOne Media/Forsa 2015
| Page 11
Our assets are facing distinctive opportunities and risks …
Key opportunities
Key risks
Ventures &
Commerce
• Creation of new local verticals
• International expansion of M4R/E
and commerce verticals
• Launch of new sales platforms
• Increased competition in M4R/E
by new entrants
• Aggressive marketing push of
key commerce competitors
Digital
Entertainment
• Growth of online ad market, driven
by video and programmatic
• Emergence of new entertainment
verticals, such as eSports
• Increasing market domination of
global giants (e.g. YouTube)
• Increasing pressure of global
PayVoD competitors
Adjacent
• Creation of new TV driven adjacent
ecosystems like digital sports
• Leverage synergies between TV
and Adjacent businesses
• Stagnation of core music market
| October 15, 2015 |
| Page 12
… leading to dedicated strategies for each of our units
Across all
markets, we
• Push organic
growth
• Accelerate
through M&A
• Internationalize
• Participate in
global value
creation
Ventures & Commerce:
Build and grow
new verticals
Digital Entertainment:
Become a global
player in video
Continue to invest
with M4R/E
Build global video
player around CDS
Adjacent:
Build new
ecosystems
Grow music
ecosystem organically
Build verticals via M&A Create European
and grow organically
alternative in Ad Tech
Build an ecosystem
around (digital) sports
Expand verticals
internationally
Identify new digital
opportunities
| October 15, 2015 |
Secure national
PayVoD top 3 position
| Page 13
Our strategy
1
How do we
accelerate
our growth
with M&A?
Outlook
2
How do we
build and
grow new
commerce
verticals?
| October 15, 2015 |
3
How do we
become a
global player
in video?
4
How do we
build new
adjacent
ecosystems?
5
What is our
financial
outlook?
| Page 14
1 2 3 4 5
We have a unique approach to create competitive verticals with M&A
… use
TV media to
build brands …
… and leverage
our vertical
synergies …
… to create
market leading
businesses
We acquire
promising assets
following a
string of pearls
approach …
| October 15, 2015 |
| Page 15
1 2 3 4 5
We acquire promising assets following a “String of Pearls” strategy
Bolt-on acquisitions accelerate our growth in
national and international markets
Attractive shareholder value creation potential
for us through synergies with TV and our verticals
Approach also includes joint deals with partners
(e.g. VC funds) to secure most attractive assets
Commerce examples
…
Entertainment examples
…
We will continue our “String of Pearls” strategy of bolt-on acquisitions and
opportunistic lighthouse deals to grow our commerce and entertainment business
| October 15, 2015 |
| Page 16
1 2 3 4 5
TV media is our key advantage to grow businesses …
Case study: Amorelie
We utilize our idle TV
ad inventory to push
businesses
Average net revenues/day
[indexed]
+120%
in second
TV flight
+50%
in first
TV flight
225
189
TV ads directly increase
sales compared to non-TV
phases (TV breaks)
150
102
100
Pre-TV
First
TV flight
TV break
| October 15, 2015 |
Second TV
flight
TV break
TV ads increase brand
awareness mid-term,
substantially leading
to higher sales also
in TV breaks
| Page 17
1 2 3 4 5
… which we complement with analytics & data
Media analytics
We constantly analyze how media
works (the best spot in the best slot for
the best audience) with our commerce
assets to maximize impact
Cross-unit data management
We implement a cross-vertical
data management to offer more
individualized products based
on our customers needs
Fully aligned
and compliant
with German
privacy laws
illustrative example
Spain
videos
| October 15, 2015 |
Spain
offers
| Page 18
Our vertical approach creates synergies – and thus further value
Example:
Travel vertical
Cross-vertical lead gen and traffic push
Marketing excellence (CRM, SEO, SEA)
Joint WKZ initiatives (ad allowance)
>25%
contribution to
revenue growth1)
>35%
contribution to rec.
EBITDA growth1)
Shared services (e.g. HR, Finance, Legal)
15%
Cross-unit data management
contribution to total
rec. EBITDA1)
We generate more revenues and cost savings with inter- and
intra-vertical synergies compared to standalone businesses
| October 15, 2015 |
1) Estimated for FY 2015, rec. EBITDA w/o TV airtime costs
Note: Etraveli signed with envisaged closing in Q4 2015
| Page 19
1 2 3 4 5
We have proven significant performance uplifts with our acquisitions
Case studies1)
+125%
2014
2013
2013
2014
| October 15, 2015 |
Rec. EBITDA
uplift within
12 months
after closing
4.9x
Blended acquisition
multiple EV/EBITDA
H1 2015 LTM
1) Year of majority stake acquisition shown
Note: Rec. EBITDA w/o TV airtime costs
| Page 20
Our strategy
1
How do we
accelerate
our growth
with M&A?
Outlook
2
How do we
build and
grow new
commerce
verticals?
| October 15, 2015 |
3
How do we
become a
global player
in video?
4
How do we
build new
adjacent
ecosystems?
5
What is our
financial
outlook?
| Page 21
1 2 3 4 5
We successfully expanded our Commerce portfolio …
M4R/E portfolio
National deals
Commerce verticals
International
deals
Beauty &
Accessories
Travel
Online
Comparison
Health &
Wellness
Selected assets
Selected assets
New
New
New
New
New
7NXT
New
New
New
New
New
New
| October 15, 2015 | Etraveli signed with envisaged closing in Q4 2015
New
to
come
| Page 22
1 2 3 4 5
… and will continue to build and grow new commerce verticals
Key market dynamics
e-Commerce market growing
double-digit globally1)
International platform-driven players
entering German market
New local digital markets emerging,
e.g. for health or food products
| October 15, 2015 | 1) Source: emarketer
Our strategic priority
We continue to
invest with M4R/E
and in Lead Gen assets,
to build new verticals in
the most attractive markets,
and grow these verticals in
Germany and internationally
with our platforms and M&A
| Page 23
1 2 3 4 5
We optimized our four phase approach to build verticals
Example: Phases of Travel vertical
Lead Gen
M4R/E
Vertical
International
Key criteria for
vertical selection:
40
countries
Test media fit of
markets with
M4R/E
Understand
markets with
asset-light invests
Build verticals
based on phase 1
and 2 learnings
| October 15, 2015 | Note: Etraveli signed with envisaged closing in Q4 2015
Expand most
promising verticals
internationally
• Synergies with TV
• Structural market
growth
• Attractive margins
• Synergies with
existing verticals
• Low likelihood of
disruptive forces
| Page 24
1 2 3 4 5
M4R/E: Initially, we test new markets and verticals with M4R/E
What we get from M4R/E deals
Equity
Rationale
Monetize our idle ad inventory
and stimulate TV ad market
Exit participation
Benefit from TV impact with
performance-based models
+26%
# of active deals
H1 2015 vs.
PY1)
Revenue share
Minimum guarantee
Test media fit and learn about
potential new markets based
on insights shared by assets
| October 15, 2015 | 1) Average of period H1 2015 vs. average of period H1 2014
| Page 25
1 2 3 4 5
Lead Gen: We enter new verticals with asset-light businesses
Our Lead Gen approach
Rationale
Understand market dynamics
by investing in Lead Gen
Travel
Beauty &
Accessories
Online
Comparison
New
verticals
Avoid high risk thanks to
high-margin businesses
without inventory cost
Use Lead Gen as conversion
driver for new verticals
| October 15, 2015 |
| Page 26
1 2 3 4 5
Verticals: We develop verticals following our digital playbook
Premium
TV media
to drive
awareness
and sales

Marketing
& data
knowledge
to optimize
SEO/SEA
and CRM

Distribution
capabilities
with existing
commerce
platforms
Local
operational
launch pad
to support
with HR,
legal and
finance


Intervertical
synergies
with our
existing
commerce
verticals

Digital
transformation
expertise
proven by
current
portfolio

Leadership
by an
experienced
strategy
team and
operational
experts

Our digital playbook
We secure majorities in attractive local niche markets around communities, make
these verticals big with our playbook and consolidate the market with bolt-on M&A
| October 15, 2015 |
| Page 27
1 2 3 4 5
International: We leverage our Media Alliance to export verticals
European Media Alliance
Media Alliance and
strategic partner
Next partner to join
Strategic rationale
Access media of leading
European broadcasters
Scandi., CEE
UK
New
>250m
Benelux
& Finland
Poland
Increase deal flow among
media partners
households
reach
France
Italy
Spain
New
New
Turkey
Greece, Rom.,
Serb., Sl.
| October 15, 2015 |
Offer “Pan European deals” to
US/international imports
| Page 28
1 2 3 4 5
Summary: We aim to be the growth partner of choice
Cash, media and
operations
Leadership
International reach
We accelerate growth
through cash, media
reach and best in class
operational support
We have an entrepreneurial leadership
team fully focused on
our verticals
We expand reach with
our Media Alliance and
international fund
partners
We aim to be the growth partner of choice for national and international digital
businesses with our commerce platform around our vertical strategy
| October 15, 2015 |
| Page 29
1 2 3 4 5
Going forward we plan to further enhance our vertical strategy
We continue to build and
grow verticals
We selectively add specialty offline
products to our verticals, e.g. for
elderly people and families
We build new sales platforms
to leverage synergies and
strengthen our sales power
| October 15, 2015 |
| Page 30
1 2 3 4 5
We converge video and commerce on new platforms
Our portfolio of online courses
Health &
Wellbeing
Video content:
Online coaching
courses
Commerce
model:
Subscriptionbased access
Sales platform:
Enrichment with
physical goods
around health
Yoga, meditation, nutrition
Bodyweight, cross-fit, HIT
Box like a world champion
Complete body transformation
Constantly expanding
| October 15, 2015 |
| Page 31
Our strategy
1
How do we
accelerate
our growth
with M&A?
Outlook
2
How do we
build and
grow new
commerce
verticals?
| October 15, 2015 |
3
How do we
become a
global player
in video?
4
How do we
build new
adjacent
ecosystems?
5
What is our
financial
outlook?
| Page 32
1 2 3 4 5
We cover the whole online video value chain in Germany …
Content creation
Aggregation
Distribution
Monetization
.de
New
AdVoD
.de
New
New
New
New
MCN
>11bn
PayVoD
video views
in H1 20151)
1) Video views of P7S1 AdVoD
| October 15, 2015 | platforms and mandates, incl. CDS
(pro forma, deal closed Q3 2015)
| Page 33
1 2 3 4 5
... whilst the online video market is becoming more complex
Global online video players
pushing into AdVoD
Programmatic advertising
players emerging globally
National digital sales houses
taking up speed
Global PayVoD players
growing in the German market
| October 15, 2015 |
| Page 34
1 2 3 4 5
We secure our national leadership and focus on international growth
Key market dynamics
Video entertainment is becoming a
local and global market (YouTube,
Facebook)
Advertising targeting is shifting from
context buying to audience buying
Global players (Netflix, Amazon) are
pushing into the German SVoD market
| October 15, 2015 |
Our strategic priority
We build a global video player
with key content verticals
around Studio71 and CDS,
create an Ad Tech stack
to broaden our AdVoD business,
and secure our national PayVoD
top 3 position via distribution
| Page 35
1 2 3 4 5
We create a global video player around Studio71 and CDS
#5
globally
+
=
#1
#6
Germany
globally
360m
>2.1bn
>2.5bn
monthly video views
monthly video views
monthly video views
Studio71 and CDS are our foundation for further global expansion –
both organically and via further international acquisitions
| October 15, 2015 |
Source: ComScore YouTube Partners Report, August 2015; Socialblade, excl. Music MCNs, last 30 days as of October 2,
2015; own tracking
| Page 36
1 2 3 4 5
We build our own Ad Tech stack to broaden our AdVoD business
Demand Side
Platform
Exchange/
Marketplace
Supply Side
Platform
Ad server
Sales house
Publisher
+ mandates
Data Management Platform
Virtual Minds and Smartstream are our nucleus for a European
alternative in programmatic to broaden our AdVoD business
| October 15, 2015 |
Note: Active Agent, Yieldlab and Adition are subsidiaries of Virtual Minds;
The Adex is a minority investment of Virtual Minds
| Page 37
1 2 3 4 5
In SVoD we secure our national top 3 position
Investments in binge
and exclusive content
New distribution
partnerships
Top binge series 2016
+101%
Total video
views2)
Top exclusive series 2015
+79%
SVoD
subscribers1)
+49%
Total user
base3)
| October 15, 2015 | 1) End of period H1 2015 vs. PY 2) H1 2015 vs. PY 3) Average per month H1 2015 vs. PY
| Page 38
Our strategy
1
How do we
accelerate
our growth
with M&A?
Outlook
2
How do we
build and
grow new
commerce
verticals?
| October 15, 2015 |
3
How do we
become a
global player
in video?
4
How do we
build new
adjacent
ecosystems?
5
What is our
financial
outlook?
| Page 39
1 2 3 4 5
We have built an ecosystem around music in Adjacent …
Live events
Music label
Cooperation
labels
| October 15, 2015 |
Ticketing
Marketing
Our TV reach and
marketing competence
is our key benefit to
build ecosystems
Artist
management
| Page 40
1 2 3 4 5
… and will replicate this success with new Adjacent ecosystems
Key market dynamics
Our strategic priority
TV media proven to be key marketing
instrument for entertainment topics
We will further organically grow our
music ecosystem and continue to
drive its digitization
Slow music label market growth
(+4% in H1 2015)1)
We will replicate the Starwatch
success in building an ecosystem
around sports
Increasing interest in new and nonprofessional sports (WWE, marathon)
We will leverage synergies of P7S1
network to increase business value
of sports rights
| October 15, 2015 | 1) Based on GfK data
| Page 41
1 2 3 4 5
Sports will be our next ecosystem – and we already started it
TV/rights
Digital video
platforms/products
Sports management,
events and ticketing
We are leveraging synergies with our commerce assets around sports, e.g. Gymondo
| October 15, 2015 |
| Page 42
1 2 3 4 5
Our sports ecosystem connects all dots for superior monetization
Production/compilation
On-site sponsoring
Creation of own sports content
(e.g. video blogs, editorial content)
On-site advertising
(posters, displays, etc.)
Ticketing
Sale and promotion of
tickets for sports events
Digital platforms
PPV/subscription
or advertising
P7S1
sports
rights
TV platforms
PPV/subscription
or advertising
Sports events
Athlete management
Organization of high
media coverage events
Develop sports
personalities and brands
Digital commerce
Merchandising and
branded products
| October 15, 2015 |
| Page 43
Our strategy
1
How do we
accelerate
our growth
with M&A?
Outlook
2
How do we
build and
grow new
commerce
verticals?
| October 15, 2015 |
3
How do we
become a
global player
in video?
4
How do we
build new
adjacent
ecosystems?
5
What is our
financial
outlook?
| Page 44
1 2 3 4 5
Outlook: How we need to grow to reach our new CMD target
We need to realize a CAGR of 16% for 2015-2018
to reach our new target – and have proven to grow faster
[ext. D&A revenues in EURm]
~16%
CAGR2)
49%
CAGR1)
+600
908
335
Actual
2012
1,535
935
H1 2015 LTM
pro forma3)
New
2018 target
1) Implied revenue CAGR 2012-2015 2) Implied revenue CAGR 2015-2018
| October 15, 2015 | 3) Pro forma including acquisitions of CDS, Virtual Minds, Smartstream, Verivox, Etraveli
Note: Etraveli signed with envisaged closing in Q4 2015
| Page 45
Our D&A presenters you will meet today
Sascha
van Holt
M4R/E
Jörg
Trouvain
Travel
Claas
van Delden
Commerce
| October 15, 2015 |
Daniel
Raab
Commerce
Markan
Karajica
7NXT
Christof
Wahl
Video
Dr. Sebastian Reza
Weil
Izad
MCN
MCN
| Page 46
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Sascha van Holt
SevenVentures
| October 15, 2015 |
| Page 47
Key achievements since last year’s Capital Markets Day
Sustained market
leadership1)
Accelerated global
import strategy
Strengthened
operational skills
No.1 media
investor
in Germany
| October 15, 2015 | 1) Based on estimated gross media volume
| Page 48
SevenVentures has grown strongly in all dimensions
+28%
+458%
+26%
Total revenue
growth1)
International
revenue growth1)
# of active
deals2)
| October 15, 2015 |
1) H1 2015 vs. PY
2) Ø of period H1 2015 vs. PY
| Page 49
We accelerate growth of digital companies …
Media
investment
Cash
investment
Operational
support
| October 15, 2015 |
Driving brand recognition
Improving sales and marketing economics
Providing additional liquidity
Offering flexible deal structures
Facilitating go-to-market through our launch pad
Leveraging our European Media Alliance
| Page 50
… and have helped to build category leaders in Germany
Zalando
| October 15, 2015 |
Lieferando
Tirendo
| Page 51
How we benefit from performance-based investments
What we get from M4R/E deals
Equity
Exit participation
Revenue share
Minimum guarantee
| October 15, 2015 |
We confirm
our outlook
to generate
>EUR 10m in
exit proceeds
p.a.
| Page 52
Our key strategic initiatives going forward
1
Continue our successful global import strategy
2
Internationalize SevenVentures
3
Diversify our investment approach
| October 15, 2015 |
| Page 53
1 2 3
Global import strategy
We have the assets and know-how to be the importer of choice
Shopkick – import case
Market entry support for leading
US mobile customers rewards player
Operations, local team and retail network
set up within six months
TV campaign enabled growth to
500k users within two months
Cash
Operations
Media
Cumulative downloads
Kickoff TV
campaign
Time
| October 15, 2015 |
| Page 54
1 2 3
Global import strategy
We had immediate proof of our global import strategy
New
2015
15%
international
share in
2015E
0%
Leading US
mobile
customer
rewards
player
Market
leader in
wearables
internat.
share in
2013
Leading
European
online shoe
retailer
Market
leader in
fashion
subscription
retailing
Premium
life-style
brand from
Norway
manufacturing
jumpsuits
Market
leader in
dance
fitness
classes
New
2015
Leading
Scandinavian
premium
fashion
e-commerce
platform
We will further drive our internationalization strategy to grow
| October 15, 2015 |
| Page 55
1 2 3
Internationalization
We are now internationalizing SevenVentures …
European Media Alliance
+
Operational support
Media Alliance and
strategic partner
Country specific market know-how
Next partner to join
Operational services
Scandi., CEE
Top tier operators
UK
New
>250m
Benelux
& Finland
Poland
Own and
3rd party
assets
households
reach
France
Italy
Spain
New
New
Turkey
Greece, Rom.,
Serb., Sl.
| October 15, 2015 |
| Page 56
1 2 3
Investment approach
… and are extending our investment approach
M4R/E
Pure media investments to
accelerate growth of laterstage start-ups
| October 15, 2015 |
Operational support
Launchpad to accelerate
market entry by combining
our operational skills and
marketing platform
Direct cash investments
Fund seeding
(Co-)Investments in selected
ventures to support potential
M4R/E deals with balance
sheet cash
Investment opportunity for
LPs to invest in funds seeded
by SevenVentures with
specific investment theme
(e.g. US growth)
| Page 57
We are the leading partner for fast growing digital companies
WHAT?
Media
investments
Operational
support
Offering reach and
eyeballs all over Europe
Creating a network of
experienced operators
all over Europe
Owned inventory Managed inventory
HOW?
WHY?
Utilize idle inventory
to create revenues and
equity value
| October 15, 2015 |
Become unrivaled
partner for growth and
facilitate deal flow
Cash
investments
Seeding a family of
funds with mainly 3rd
party cash
US
GROWTH
EU
GROWTH
BRAND
REVIVAL
Setup in
progress
Planned
for 2016
Planned
for 2017
Participate in global
value creation and
broaden pipeline
| Page 58
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Jörg Trouvain
7Travel
| October 15, 2015 |
| Page 59
Key achievements since last year’s Capital Markets Day
Market
outperformance
Etraveli
acquisition
First steps into
internationalization
Operational
excellence
outperforming
~2.1x
the market1) by
40
countries
| October 15, 2015 |
1) Market based on weighted average for relevant market segments
Note: Etraveli signed wit invisaged closing in Q2 2015
Strong TV
synergies
| Page 60
We have become a segment leading online travel powerhouse …
>3.1m
>20%
>1.6bn
>165%
#Transactions
Reach of German
internet population
Total Transaction
Value (TTV)
TTV growth
vs. PY1)
| October 15, 2015 |
1) FY 2015 estimates
Note: “Pro forma” including Etraveli
| Page 61
… significantly outgrowing the market
Growth rate comparison
Growth rate 2015E vs. 20141)
Online
packaged tours
Travel market for
independent VTO’s2)
~EUR 4bn
EUR 0.7bn
~2.1x
~12 %
~6%
Travel market
for hotel
Online flight
market
~EUR 9bn
Market
~EUR 3bn
Car rental
market
~EUR 0.6bn
1) Market based on weighted average for relevant market segments 2) VTO = Virtual Tour Operator
| October 15, 2015 | Note: Figures based on 2015
Source: TravelTainment, PhoCuswright - European Online Travel Overview Tenth Edition, PS71 estimates
| Page 62
Three key strategic intiatives going forward
1
Continue “String of Pearls” M&A strategy along customer journey
2
Ensure operational excellence with unique vertical approach
3
Push revenue growth through TV leverage
| October 15, 2015 |
| Page 63
1 2 3
“String of Pearls“
We offer a unique travel customer journey
Customer journey
Inspiration
Mission
We want to become a
European online travel
market leader, using
P7S1 TV leverage to
build a portfolio of trusted
brands along the
customer journey
| October 15, 2015 |
In Destination
Search
Booking
| Page 64
1 2 3
“String of Pearls“
Just signed: We acquired a leading European OTA1) for flights
What Etraveli is
Why we acquired it
100%2)
We complement our online travel
vertical and close the blank spot
“flights” in our customer journey
Etraveli enables a profitable, low risk
internationalization of Travel based
on a cost efficient platform strategy
40
countries
1.6m
~1bn
~70m
trips
per year
EUR gross
bookings3)
EUR
revenues3)
| October 15, 2015 |
1) Online Travel Agency 2) P7S1 stake 3) FY 2014 figures
Note: Signed with envisaged closing in Q4 2015
| Page 65
1 2 3
“String of Pearls“
Etraveli will turn our vertical into an international player
Importer of choice
Building new brand for
Etraveli meta business in
Germany – leveraged by TV
| October 15, 2015 |
| Page 66
1 2 3
Operational Excellence
Our vertical approach creates synergies – and thus further value
Example:
Travel vertical
Cross-vertical lead gen and traffic push
Marketing excellence (CRM, SEO, SEA)
Joint WKZ initiatives (ad allowance)
>25%
contribution to
revenue growth1)
>35%
contribution to rec.
EBITDA growth1)
Shared services (e.g. HR, Finance, Legal)
15%
Cross-unit data management
contribution to total
rec. EBITDA1)
We generate more revenues and cost savings with inter- and
intra-vertical synergies compared to standalone businesses
| October 15, 2015 |
1) Estimated for FY 2015, rec. EBITDA w/o TV airtime costs
Note: Etraveli signed with envisaged closing in Q4 2015
| Page 67
1 2 3
Operational Excellence
Operational excellence is key for us to push synergies
Selected results of centers of
excellence
CRM1)
optimization
• Uplift in newsletter opens and
clicks, e.g. up to 300% for weg.de
SEO2) excellence
• Overall CVR improvement
SEA3) performance
• Automated landing page
optimizations
WKZ4) upsides
• Data driven marketing
| October 15, 2015 |
1) CRM: Customer Relationship Management 2) SEO: Search Engine Optimization 3) SEA: Search Engine Advertising
4) WKZ: Advertising allowance (placement fees)
| Page 68
1 2 3
TV leverage
TV presence allows us to optimize online ad costs
Average Cost-per-Click per segment1)
[Germany, in EUR]
∆-83%
∆-56%
0.42
∆-45%
2.82
1.52
0.83
1.25
0.07
Dynamic virtual
tour operators
Rental car
comparison
1) Google brand search cost
||October
October 15,
15, 2015
2015 || Note: Comparison to competitors’ median CPC based on August, 2015
Source: searchmetrics
German online
package tour
| Page 69
And the journey continues …
Share/past trip
On trip/in destination
| October 15, 2015 |
Inspiration
| Page 70
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Daniel Raab
Beauty & Accessories
| October 15, 2015 |
| Page 71
Key achievements since last year’s Capital Markets Day
Buy & accelerate approach
We acquired 2 majorities in Q2 2015
(Flaconi, Amorelie)
We started a partnership with a strategic
investor for Valmano (51% share)
We leveraged synergies and optimized
our companies, e.g. reporting process,
pricing optimization
We started to internationalize,
Amorelie launched French online shop
Future Targets
We continue to leverage the Media
Alliance to drive internationalization
| October 15, 2015 |
| Page 72
For new verticals, we target brand-driven (niche) segments
Segment selection criteria
Physical goods cluster
• Growth markets with local edge, that are fragmented/difficult to enter for global digital players
Established
• Our TV assets can be successfully leveraged,
providing a strong competitive position
• Revenue potential of >EUR 100m (per vertical)
and double-digit rec. EBITDA margin possible or
cash contribution from working capital
• Significant cluster synergies and potential for
exclusive brands

Beauty & Accessories
In preparation
Home & Living
• High average basket size
• Availability of complementary partners to
mitigate cash/inventory risk
| October 15, 2015 |
Fashion & Lifestyle
| Page 73
We started with a media for equity deal
Flaconi investment overview
Flaconi history
P7S1 share
[in %]
Media for equity
deal with cash
component
100
47
Cash deal to
acquire 100%
stake
P7S1 share
Initial
2015
No. 1 pure-play beauty retailer in
Germany
Founded in July 2011, assortment
extended to skincare and haircare
Staged investment approach to
ensure TV fit and attractiveness
| October 15, 2015 | Note: Invested cash excluding GMV; valuation based on e-commerce typical multiple, based on 2015 revenues
| Page 74
Key for success: Our playbook
playbook
1. TV expertise
• Creation of perfect
TV spot
• Optimization of spots
(CPV reduction via
TV analytics)
• Partnering
(WKZ deals)
• TV formats to position
brand (e.g. Amorelie
Love Lounge)
• International Media
Alliance to promote
business beyond
Germany
2. Marketing
competence
3. Data analytics &
process excellence
4. Shared services &
negotiation
5. Tech & expert
network
• Best-in-class
marketing to reach
local communities
• Elasticity-based
pricing
• SEO/SEA optimization
• CRM optimization
(e.g. personalization)
• Optimal media
relations (PR training)
• Controlling, Reporting
& Finance
• Definition of KPIs
• Setup of automated
reporting
• Cash management
• Sales optimization
• Procurement
• Ordering and
forecasting
• Vendor negotiations
(scorecard)
• Legal & Tax support
• HR/Recruiting
• Setup of
infrastructure
• Ad-hoc support
• Frame contracts
• Product/Marketing
(e.g. payment, affiliate, offline marketing)
• IT infrastructure
(e.g. server, MS
licenses, hardware)
• Carrier conditions
• Tech/mobile services
• Developer capacity
• Best practices & tools
• Mobile Xchange
developer meeting
• Ambassador system
(management skills for
growing business)
• Partnerships &
cross-selling with
portfolio companies
Assessment after acquisition to set up action plan and ongoing support on demand
| October 15, 2015 |
| Page 75
We develop our companies based on playbook levers
1. TV expertise
2. Marketing competence
Example: Average TV CPV in 2014
Example: Price tests and elasticity analysis
Strong TV performance
improvements throughout
2014
Identifying product
characteristics resulting
in high, medium,
low price elasticity
3. Data analytics & process excellence
4. Shared services & negotiation
5. Tech & expert network
Example: Affiliate marketing
insourcing & bundling
Example: Klarna contracts
Example: Mobile expert network
Direct KAM with
state-of-the art
technology as well
as consolidation to
one strategic partner
Saving potentials due
to shared services
(e.g. legal) and negotiation,
e.g. payment frame
contracts
Offer advice for new
developments and
cover short-term
development
bottlenecks via network
| October 15, 2015 |
| Page 76
We drive growth with joint forces
Joint forces
Proven success
Visits1)
Sustainable business models
led by strong teams
+
+95%
TV power
to drive traffic
+
7Commerce playbook
to optimize business
H1 2014
| October 15, 2015 | 1) Visits Beauty & Accessories: Flaconi, Amorelie and Valmano
H1 2015
| Page 77
We know how to do marketing efficiently
More traffic at less cost
H1 2015 vs. H1 2014
Higher conversion and lower returns
H1 2015 vs. H1 2014
+74%
+27%
-30%
Total visits
Cost per visit
-37%
Conversion rate
Returns1)
We optimize crucial online marketing KPIs without trade-offs
| October 15, 2015 | 1) Returns of quantity, in % of revenues
| Page 78
We know how to manage e-commerce operations
Order increase with low inventory
H1 2015 vs. H1 2014
Lower cost and better selection
H1 2015 vs. H1 2014
+153%
+26%
+15%
-19%
Revenues
Inventory (end of June)
Cost per order
Selection (June)
We optimize crucial e-commerce operations KPIs without trade-offs
| October 15, 2015 |
| Page 79
Our portfolio companies with significant operational success
H1 2015 vs. H1 2014
H1 2015 vs. H1 2014
+173%
+145%
+12%
Revenues
Marketing costs1)
| October 15, 2015 | 1) Excluding TV Media
Revenues
+79%
Marketing costs1)
| Page 80
Key strategy: We follow a phased approach for further scale-up
Beauty & Accessories
Further expansion
• Offline retail partners
International
National (DACH)
• Expand German business models to
European markets
• Drive consolidation within vertical
• Identify international brands/business
models that can be brought to Germany
• Further strengthen position
in Germany
• Leverage international synergies
• Leverage synergies
Home & Living
• Licensing/partnership to develop
online business for offline retailer
• Direct sales (e.g. Amorelie)
Rationale
• Leverage TV power
• Stimulate TV ad market
• Diversify our portfolio
• Invest where trust and brand is key
• Transform offline assets
Fashion & Sports
| October 15, 2015 |
| Page 81
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Claas van Delden
Online Comparison
| October 15, 2015 |
| Page 82
Key achievements since last year’s Capital Markets Day
Acquired 80%
stake in Verivox
Acquired add. 25%
stake in Preis24
New vertical
“Online Comparison”
#1 in energy comparison
#1 in mobile deals
#1 positions in key
segments
Strengthened #1
position of moebel.de
Broadened product
portfolio of 12Auto
#1 in furniture comparison
Top 5 in car comparison
| October 15, 2015 |
Strong double-digit
growth rates
| Page 83
Our core assets Verivox & moebel.de are on a strong growth track
Our core assets show a strong performance …
… within a highly attractive market3)
Revenues
Market position
[in EUR m]
+8%
#1
Visits
CAGR
+48%1)
685
Revenues +69%1)
#1
Contracts +34%2)
Revenues +46%2)
Product
comparison
market
200
Services
comparison
market
485
920
270
650
2014
2018E
1) Revenue and visits growth H1 2015 vs. H1 2014 (moebel.de not consolidated in H1 2014, consolidated since July 2014)
2) Revenue and contracts growth H1 2015 vs. H1 2014 (Verivox first time consolidation September 2015)
| October 15, 2015 |
3) Online comparison market size estimate based on P7S1 research, sources: Statista, Similarweb, Bundesnetzagentur,
PWC, Roland Berger
| Page 84
We are getting close to EUR 1bn total transaction value LTM1)
>62m
>1.5m
(+41%)
(+21%)
>EUR
950m
(+20%)
Visits2)
Transactions2)
Total
Transaction
Value2)
1) Total Transaction Value generated by Online Comparison assets in last twelve months (June 30, 2015); excl. 12Auto Group; transaction
| October 15, 2015 | value = annual revenue generated by service providers with customers referred by our assets (e.g. energy services, telco services)
2) LTM June 15; KPI’s show data for last twelve months ending June 30, 2015 (∆ in % vs. previous year); excl. 12Auto Group
| Page 85
Our three key strategic initiatives
1
Continue “String of Pearls” M&A strategy to enter additional market
segments
2
Drive sales growth of portfolio companies via TV advertising
3
Create new advertising solutions for ad customers
| October 15, 2015 |
| Page 86
1 2 3
Continue “String of Pearls“ M&A strategy
Continue “String of Pearls” M&A strategy to enter new segments
Market position
Telco
Home & Living
#1
#1
Energy
Under evaluation
(+ new segments)
(e.g. Fin. Services)
#1
Deal
Asset
…
2012: M4E (60%)1)
2013: M4E (16%)1)
2015: Cash (+25%)1)
2014: M4E (+34%)1)
2015: Cash (80%)1)
…
Enter additional market segments with mix of de-risked M4E deals and bolt-on acquisitions
| October 15, 2015 | 1) Stake acquired by P7S1
| Page 87
1 2 3
Drive sales growth
Drive sales growth of assets via TV & online marketing playbook
Our ”TV & online marketing playbook”…
…drives improvement of TV performance
Indexed TV cost per visit1)
Optimized, cost-per-visit based campaign
planning
-35%
100
65
Benchmarking data from P7S1 portfolio
(KPIs, creatives)
TV-based steering of online marketing channels
2014
2015E
Significant increase in TV presence
Achieve double-digit sales growth for assets (~2x market growth)
||October
October 15,
15, 2015
2015 || 1) TV cost per visit = Gross TV spent per visit
| Page 88
1 2 3
Create new advertising solutions
Additional innovative advertising solutions for ad customers
P7S1 asset
How it works
Partner
Close collaboration of
SevenOne Media and Online
Comparison assets
P7S1 asset
Customized advertising
package incl. Online + TV
Partner
Telco
Energy
Customized advertising solutions (examples)
Branded reseller
mobile tariff
Combined advertising
packages for industry players
(new brand + TV package +
online integration)
Realize additional advertising
revenue stream (WKZ1)) for
Online Comparison assets
Single-digit rec. EBITDA margin advantage vs. competitors
| October 15, 2015 | 1) Ad allowance
| Page 89
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Markan Karajica
7NXT
| October 15, 2015 |
| Page 90
7NXT: Our new hub for video innovations
Three
selected
pillars of
7NXT
Objective
Identify and accelerate innovative
digital video businesses
Guiding Mobile & social, smart technology
principles and lean operations
Diverse
revenue
streams
| October 15, 2015 |
Subscriptions, one-off payments,
advertising financed, e-commerce
| Page 91
7NXT as TV leveraged business with three strategic pillars
1
Online
coaching
2
Augmented and
virtual reality
50m
11m
members in
fitness clubs
in Europe1)
global virtual
reality users
in 20162)
Launch multiple pay
online courses and wellbeing marketplace
Establish own augmented/
virtual reality platform as
1st mover in GSA
3
New TV
Invest in new TV content
categories and create
360° ad concepts
Growth markets | low complexity | TV scalability
| October 15, 2015 |
1) Source: European Health & Fitness Market Report 2014 (EuropeActive and Deloitte)
2) Source: Virtual Reality Market Brief 2015 (SuperData Research)
| Page 92
1 2 3
Online coaching
Unique portfolio of top online courses successfully launched
International
launch
64k
7k
1.4m
76k
20k
282k
189k
133k
217k
162k
344k
18k
fans
follower
fans
follower
subs
fans
follower
subs
fans
follower
fans
follower
10-week-program: EUR 79
8-week-program: EUR 79
12-week-program: EUR 99
8-week-program: EUR 79
8-week-program: EUR 79
Power yoga, meditation, nutrition
Bodyweight, cross-fit, HIT
Complete body transformation
Preparation for winter season
Box like a world champion
80 videos unlocked week-by-week
80 videos unlocked week-by-week
Exclusive management
30 videos unlocked week-by-week
30 videos unlocked week-by-week
Subscription: ~ EUR 14.99 p.m.1) Subscription: ~ EUR 14.99 p.m.1) Subscription: ~ EUR 14.99 p.m.1) 1-year prolongation: EUR 29
Jan. 2015
Apr. 2015
|| October
June 25/26,
15, 2015
2015 ||
Sep. 2015
Oct. 2015
1-year prolongation: EUR 29
Oct. 2015
1) After completion of program, users have the option to switch into a subscription model for ~ EUR 14.99 per month
with 12 months minimum – prices may vary
| Page 93
1 2 3
Online coaching
Next steps: Build user centric health and wellbeing eco-system
Upcoming programs
Christine
Theiss
International
launch
Urban dance school
12-week challenge: EUR 99
Q4 2015
Nutrition
More to
come
Diet program
Guided online diet program
+20 programs until Q1 2016
Sports and self-improvement
|| October
June 25/26,
15, 2015
2015 ||
License/
Provision/
Share
USER
Data
Nikeata
Thompsen
Stay in shape with former
kickbox world champion
10-week program: EUR 79
Q4 2015
User centric eco-system
• 2nd largest
e-retailer for
sports & lifestyle nutrition
in Germany
• Dedicated
private labels
for 7NXT ecosystem
| Page 94
1 2 3
Augmented and virtual reality
Creating new user experience with augmented and virtual reality
Tech partner
Proprietary
technology
+
Virtual
Virtual
E-commerce
Augmented
P7S1
Entertainment
content
Sales & media
power
Building the leading B2C hub
for AR/VR content in GSA
| October 15, 2015 |
| Page 95
1 2 3
New TV
Invest in new TV content categories
Content production
eSports
3m
>200m
video views
season 1
global
audience1)
Exclusive family sitcom produced in TV quality by
7NXT for target group 30+ (season 2 launched Oct 1)
Enter into global eSports market by partnering
with key market participants
Strategic ad partnerships with top brands Vodafone
& Opel (innovative 360° content ad concept)
Leverage P7S1 assets to create online centric
entertainment business
| October 15, 2015 | 1) In 2014; The Global Growth of eSports (2015)
| Page 96
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Christof Wahl
AdVoD
| October 15, 2015 |
| Page 97
We are positioned along the entire value chain
Content creation
Aggregation
Distribution
Monetization
.de
New
AdVoD
.de
New
New
New
New
MCN
PayVoD
| October 15, 2015 |
| Page 98
Key achievements since last year’s Capital Markets Day
Secured #1 in
premium video1)
Acquisition of
Virtual Minds
Acquisition of
Smartstream.TV
Acquisition of
Putpat.TV
| October 15, 2015 | 1) 43% gross in-stream market share in Germany H1 2015 (Source: Nielsen Media Research)
| Page 99
We have significant digital reach
31m
25m
>3m
880k
500k
subscribers
total fans
followers
followers
followers
International
partnership
under
negotiation
Test cases
for special
target groups
ongoing
220
152
34
30
9
6
3
channels
fan sites
fan sites
fan sites
fan sites
boards
blogs
15, 2015 |
|| October
May 8, 2014
13k
11k
subscribers
in 14 days
storyviews
in 24 hours
1st test case
with “Promi Big
Brother”
1st test case
with “Got to
Dance”
Page| Page
100 100
Our CDS acquisition is driving growth on a global scale
49m
35m
(+543%)
(+70%)
(+135%)
Video views
in H1 2015
Monthly UU
in H1 20151)
Monthly video UU
in H1 20151)
11bn
>
1) Sources: AGOF Internet Facts June 2015 (10+) and ComScore Video Metrix (US desktop only)
| October 15, 2015 | Note: CDS - pro forma, deal closed in Q3 2015
Note: UU = unique users
| Page 101
We have a strong footprint in the German AdVoD market
H1 2015, Germany
P7S1
market
share
| October 15, 2015 |
Premium video ad market1)
43%
Total video ad market2)
16%
1) Gross market: Nielsen Media Research (excl. YouTube/Facebook)
2) Net market: P7S1 estimate (incl. YouTube/Facebook)
| Page 102
Video advertising market is highly attractive …
Digital advertising market (net)
[in EUR bn]1)
CAGR
2014-2018:
+9%
CAGR
-12%
+7%
+11%
2)
2014
+35%
Online video
advertising with
highest growth
rate of +35%
2018E
| October 15, 2015 |
1) Source: Magna Global and P7S1 estimate
2) Online video incl. in-stream video and in-page video
| Page 103
… and mainly driven by mobile
Digital advertising market (net)
[in EUR bn]1)
CAGR
2014-2018:
+9%
CAGR
-2%
+47%
2014
Mobile
advertising with
highest growth
rate of +47%
2018E
| October 15, 2015 | 1) Source: Magna Global and P7S1 estimate
| Page 104
The battle for eyeballs is getting more competitive
Global internet giants are
pushing into AdVoD
Social platforms are enriching
their services with video
Print publishers are telling
360° stories
Digital first content players
have their own destinations
| October 15, 2015 |
| Page 105
Key strategic initiatives for AdVoD going forward
1
Build local entertainment verticals with strong editorial content to
form sticky user community and exploit commerce revenues
2
Differentiate by investing in own IP base in digital video – short form &
long form – and enlarge global reach of our short form digital video content
3
Create 360° user experience around our leading TV formats
in digital online – for desktop and mobile
4
Create own European alternative in Ad Tech to broaden our
AdVoD business
5
We learn from next generation companies for our future
business: Video live streaming and virtual reality
| October 15, 2015 |
| Page 106
1 2 3 4 5
Local entertainment verticals
Build local entertainment verticals with strong editorial content
MEN
HIGH FASHION
COSMETICS
CARS
Strong editorial content
Deeply enrooted in special
interest target group
Generate intense brand
emotions
Become #1
online men
video magazine
1st
Launch
video Enter promising
Establish
magazine for
market in natural premium special
high fashion
cosmetics
interest platform
| October 15, 2015 |
Exploitation of commerce
revenues
| Page 107
1 2 3 4 5
Own IP
Invest in own IP base in digital video and enlarge global reach
We are specialists in developing
unique digital video content
Next generation content IP creators
Global roll-out of key formats
ROCKETJUMP
7.7m Subs
GRONKH
3.8m Subs
|| October
June 25/26,
15, 2015
2015 ||
FOWLER SISTERS
4m Subs
Accelerate creation of own IP
| Page 108
1 2 3 4 5
360° user experience
Create 360° user experience around our leading TV formats
Scale original & viral content
8.6m
• Make TV content viral & snackable
total online
video
views
for mobile & social usage (<120s)
Social media
• Production by newly created,
dedicated “Short Clip Studio” unit
• Drive engagement with highly
535k
33k
13k
fans
followers
subs
relevant daily newsfeed (buzzfeed)
External “buzz”
Daily
interactive
live web show
with live
chats
Available
for desktop
and mobile
| October 15, 2015 |
| Page 109
1 2 3 4 5
Ad Tech
Create own European alternative in Ad Tech
Virtual Minds
Smartstream.TV
Ad blocker solution
• Comprehensive digital Ad
• Secure position in growing
• Increasing ad blocker rate
Tech stack for programmatic
advertising
• #1 German premium
display SSP with
lower price video audience
segment (long-tail)
• #1 German multi-screen
Yieldlab1)
premium video network
“String
of Pearls”
approach
| October 15, 2015 |
1) Yieldlab subsidiary of Virtual Minds. 2) In Germany
Source: PaigFair and Adobe AdBlocking Report 2015
in Germany (14m unique
users, +17% vs. PY)
• Patent-pending in-house
proprietary tech solution
for video
31m
25%
unique
users
of online
users2)
| Page 110
1 2 3 4 5
Video live streaming and virtual reality
We learn from next generation companies for our future business
Minority
invest
Minority
invest
Next generation video live streaming platform
targeting professional content creators
Production and distribution of cinematic
virtual reality content
Live video multi-stream between content
creators & audience (strong engagement)
Cutting-edge technology & software for
capturing and editing
Creating new revenue streams:
Tips, paid content and creator tools
Creating basis for next
major content platform
We invest in the future of video live streaming
| October 15, 2015 |
We invest in the future of virtual reality
| Page 111
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Dr. Sebastian Weil, Reza Izad
MCN
| October 15, 2015 |
| Page 112
What we do at Studio71
Aggregation
and talent scouting
| October 15, 2015 |
Development
and production
Channel management
and cross promotion
Advanced traditional
and concept sales
| Page 113
Key achievements since last year’s Capital Markets Day
Signed more top
creators
Realized bigger
productions
Became #1 MCN
in Germany1)
Acquired #6
MCN globally2)
+
GERMANY
Excelled at pingpong with P7S1
Built best practice
branded content
Now #5 MCN
in the world2)
=
GLOBAL
| October 15, 2015 | 1) ComScore YouTube Partners Report, August 2015. 2) Socialblade, excl. Music MCNs, last 30 days as of October 2, 2015
| Page 114
We grew strongly and are now market leader in Germany
Strong growth of VV continued
Studio71 video views, August 20151)
No.1 position in Germany
ComScore MCN ranking, August 20152)
[in m]
360
+88%
growth
vs. PY
168
258
270
Dec
Mar
193
124
22
Sep
41
Dec
2013
Mar
Jun
Aug
2014
| October 15, 2015 |
Aug
Studio 71
QuizGroup
Maker
TubeOne
Mediakraft
2015
1) Source: YouTube CMS, own calculations
2) Source: ComScore YouTube Partners Report, August 2015, German video views in m, desktop only
| Page 115
Strong performance along our major KPIs
360m
31m
1.8m
+88%
+132%
+41%
Monthly video
views1)
Total
subscribers2)
Average VV/
channel3)
| October 15, 2015 |
1) August 2015 vs. PY 2) August 2015 vs. PY 3) Average VV/Channel last 3M on Sept. 29, 2015 vs. PY, only channels
in network since August 2014
| Page 116
We are now a Top 5 global MCN with a premium market position
Premium market position …
GLOBAL
High
(>1bn)
Global aggregator
MCN
… with highest reach per channel1)
0m
Global premium
MCN
1,300
Channels
>2.5bn
monthly VV
1m
2m
Ø 1.8m VV/channel
>50,000
Total
reach
p.m.
>300m
Channels
>15,000
Niche/local
aggregator MCN
Niche/local
premium MCN
Channels
>30,000
Channels
subscribers
>50,000
Channels
Low
(<1bn)
1,300
Low
(<0.5m)
Avg. reach per
channel p.m.
High
(>0.5m)
channels
| October 15, 2015 |
1) Average VV/Channel calculations based on numbers from SocialBlade, for Studio71 out of own CMS, for Maker from
company website, own calculations
| Page 117
Presenting Studio71
| October 15, 2015 |
| Page 118
The global MCN market has become more complex
1
3
Internationalization of
MCN business
Push towards branded
entertainment
| October 15, 2015 |
4
2
Professionalization
of content creation
Tech & data becoming
more important
Fragmentation of
5 distribution landscape
| Page 119
Our five key strategic initiatives to become a top 3 global MCN
1
Internationalization: Further integrate CDS & Studio71, M&A of
additional MCNs & partnering with broadcasters
2
Content Creation: Global roll-out of key formats, accelerate creation
of new IP
3
Branded Entertainment: Access marketing budgets for international
branded entertainment deals
4
Tech & Data: Further development and roll-out of best-in-class
tools & analytics
5
Distribution: Broaden distribution towards new platforms
(e.g. Facebook, Twitter)
| October 15, 2015 |
| Page 120
1 2 3 4 5
Internationalization
Acquisition of CDS was a major step towards internationalization
Currently
7 offices
on two continents
| October 15, 2015 |
| Page 121
1 2 3 4 5
Content creation
We are specialists in developing unique web-only content …
Top Studio71 and CDS properties
New & upcoming web formats
Season 2
TXT COMMITTEE
| October 15, 2015 |
| Page 122
1 2 3 4 5
Content creation
... and are home to some of the most famous creators in the world
Gaming
Beauty &
Lifestyle
Comedy
& Pranks
Entertainment
Sports &
Auto
Music &
Urban
Kids &
Family
ROCKETJUMP
7.7m Subs
FOWLER SISTERS
4m Subs
EPIC MEAL TIME
6.9m Subs
LOGAN PAUL
8.5m Followers
KEITH & KEVIN
1m Subs
BOYCE AVE.
7.5m Subs
FRED
2.5m Subs
FPS RUSSIA
5.8m Subs
LAUREN CURTIS
3.2m Subs
ROMAN ATWOOD
7.2m Subs
RHETT & LINK
3.7m Subs
KARL ESS
400k Subs
UKF DUBSTEP
5.9m Subs
GIVEBACKFILMS
500k Subs
GRONKH
3.8m Subs
DFASHION
400k Subs
RALPH RUTHE
400k Subs
LEFLOID
2.8m Subs
JP
300k Subs
MAJESTIC
2.6m Subs
RAINBOW LOOM
100k Subs
| October 15, 2015 |
| Page 123
1 2 3 4 5
Content creation
Now we take our core competencies to the next level
Next generation of IP creators in our network – moving to the big screens
Big entertainment properties – going digital with the help of Studio71
MAXIMUM RIDE
by James Patterson
| October 15, 2015 |
| Page 124
1 2 3 4 5
Branded Entertainment
We are global Branded Entertainment experts …
Coke TV
Rhett & Link/Wendy’s
• Over 17.5m video views on YouTube
• More than 200k YouTube subscribers
• Over 7m video views on YouTube
• More than 600k Facebook fans &
450k Twitter followers reached
| October 15, 2015 |
| Page 125
1 2 3 4 5
Branded Entertainment
… and have built up strong digital service capabilities
Best-in-class channel management & productions for our broadcasting clients …
+279%
Subs
... as well as for brand partners – realizing strong performance uplifts
| October 15, 2015 |
| Page 126
1 2 3 4 5
Tech & Data
Our technology is ready for the future of the MCN business
Best-in-class business intelligence: Studio71 tools & analytics
Employee
dashboards
Tools for
creators
| October 15, 2015 |
| Page 127
1 2 3 4 5
Distribution
We constantly broaden our distribution towards new platforms
We distribute our content on various platforms …
… and have strong negotiation power towards further video distribution partners
| October 15, 2015 |
| Page 128
October 15, 2015
Growing to the next level
Capital Markets Day 2015
Christof Wahl
PayVoD
| October 15, 2015 |
| Page 129
Key achievements since last year’s Capital Markets Day
Closed key
distribution deals
New/extended
studio deals
Exclusive
hit series
Expanded live
offering
EMPIRE
WWE
THE 100
UFC
New
Closed landmark
distribution deals
for maxdome
SVoD proposition
| October 15, 2015 |
Closed new output
deal with HBO for
EST; extended
Disney partnership
for SVoD
Secured new
high-end exclusive
series for SVoD
Expanded
“Live Fighting
Entertainment”
offer with UFC deal
| Page 130
maxdome has grown strongly in all dimensions
+79%
+101%
+49%
SVoD
subscribers1)
Total video
views2)
Total user
base3)
| October 15, 2015 | 1) H1 2015 vs. PY 2) H1 2015 vs. PY 3) Active unique users: Average per month H1 2015 vs. PY
| Page 131
German PayVoD market with strong growth outlook …
maxdome will prevail as key PayVoD player
Market size SVoD
Market size TVoD/EST
[in EUR m]
[in EUR m]
+45%
575
+25%
187
2015E
265
137
2018E
Key players
2015E
2018E
Key players
| October 15, 2015 | Source: P7S1 analysis based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research
| Page 132
… as the digitization of home video in Germany accelerates
Digital PayVoD will surpass physical video in Germany by 2019
Market size: Total home video market in Germany
[in EUR m]
1,800
1,825
1,850
1,875
1,925
1,950
18%
25%
34%
45%
57%
66%
Digital PayVoD
43%
34%
Physical video
2019E
2020E
82%
2015E
75%
2016E
66%
2017E
55%
2018E
| October 15, 2015 | Source: P7S1 analysis based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research
| Page 133
Especially the SVoD market is ready to take off
German penetration
comparably low …
SVoD TV household penetration
… but several new players3)
entered the market …
… as notable
growth to come until 2018
2006 market players
SVoD TV household penetration5)
[in %]
[in %]
451)
+47%
2015
221)
72)
CAGR
254)
72)
2015
1) SVoD TV household penetration; Nielsen Total Audience Report Q2 2015, Ofcom CMR UK Q1 2015
||October
October 15,
15, 2015
2015 || 2) P7S1 analysis, 08/2015, based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research
3) SVoD 4) P7S1 analysis; 2015 EoY estimates 5) based on 38.9m TV households in Germany
2018E
| Page 134
SVoD market trends have redefined user expectations …
Binge viewing & movies
Connected devices
Need to offer all episodes &
seasons of series; Movies are
key for driving new users in
Growing penetration of
network enabled device for
simultaneous VoD experience
Lean user experience
Distribution
Simple UX and easy content
discovery / inspiration as part
of customer centricity
| October 15, 2015 |
All traditional distributors are
introducing premium VoD
services
| Page 135
… and created demand of traditional distributors to offer SVoD
All-in-one Set-Top-Box solution
for linear TV & leading SVoD service
All-in-one Set-Top-Box solution
for linear TV & leading SVoD service
maxdome exclusive and
fully integrated SVoD service
maxdome exclusive and
fully integrated SVoD service
7.1m
potential
households
||October
October 15,
15, 2015
2015 ||
1.7m
potential
1)
households
1) Additional potential upside through recent Tele Columbus acquisitions of primacom (+1.1m households) and pepcom
(+0.8m)
| Page 136
maxdome’s strategy is primarily focused on driving SVoD
Core: SVoD
Strategic focus
PRODUCT
Bread & Butter
CONTENT
Key ingredient
MARKETING
Traffic driver
DISTRIBUTION
Accelerator
Upsell: TVoD/EST
Core of user experience and
product feature upgrades
Sharpen value proposition and drive
upsell into SVoD user base
Focus on “binge viewing” for top
US and exclusive series and secure
top movies
Ensure 100% coverage of studio
output deals
Tap new marketing channels
Leverage strong studio relationships
for joint effort to push top-tier titles
Focus on distribution partnerships
Push service onto new platforms and
tap new distribution channels
||October
October 15,
15, 2015
2015 ||
| Page 137
maxdome‘s key strategic initiatives for next 12 months
1
Secure further landmark distribution deals
2
Continue securing new exclusive content and more binge series
3
Continue optimizing quality of service and implement new product features
| October 15, 2015 |
| Page 138
1 2 3
Landmark distribution deals
Distribution is key: Secure further landmark distribution deals
maxdome with ~100% OTT coverage & innovative partnerships in place
Device coverage
| October 15, 2015 |
Distribution partners
| Page 139
1 2 3
Exclusive content and binge series
Secure new exclusive content and more binge series
maxdome offers key exclusive content and a selection of top binge series
Top exclusive series of 2015
THE 100
Top binge series for 2016
maxdome will continue to cover the
majority of top US series
Examples
EMPIRE
SECRETS & LIES
| October 15, 2015 |
| Page 140
1 2 3
Optimizing quality of service
Continue optimizing quality of service and introducing features
We established great new features in 2015; many more to come in 2016
Next episode
Download manager
Personalization
New mobile players
| October 15, 2015 |
Premium detail page
Premium cover flow
Mobile UX
improvements
| Page 141