Post on 31-May-2020
THREE LEVERS TO DELIVER OUR GROWTH PLAN
RED ARROW STUDIOS
OUR BUSINESS
CREATE A GERMAN CONTENT ECOSYSTEM
Build-&-Buy approach to strengthen our German footprint and increase our internal Entertainmentcontent feed
EXPAND OUR INTERNATIONAL FOOTPRINT
Committed to our businessand managed for success, continuing to evaluate strategic partnering options for scale
DRIVE AND SCALE OUR LEADING STUDIO71
Leverage intra-group synergies and expand high margin business
1 2 3
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OUR VISIONA LEADING INDEPENDENT GLOBAL CONTENT STUDIO AND VIDEO PLATFORM WITH GROWTH PLANS
PRODUCTION
DISTRIBUTION
DIGITAL
LONG-FORMPRODUCTION
TV NETWORKS/GLOBAL PRODUCTIONSALES
CREATIVE TALENT
PACKAGINGTALENT AND IP
FINANCINGEARLY-STAGE
DEVELOPEMENT
IP INVESTMENT/DEFICIT FINANCING
CONTENTPACKAGING
SALES ANDDISTRIBUTION
SHORT FORMDIGITAL PRODUCTION
ADVERTISINGAND BRAND SALES
ONLINE TALENTMANAGEMENT
DATA TECHNOLOGYAND BRAND SAFETY
INCREASED COVERAGE OF VALUE CHAIN ACTIVITIES
DISTRIBUTIONPRODUCTION
DIGITAL
RED ARROW STUDIOS
148
SHARE OF COMMISSIONED CONTENT SPEND OF TV CHANNELS1)
EXPAND RED ARROW'S GERMAN PRODUCTION FOOTPRINT
1) Red Arrow Studios share of TV channels’ commissioned content spend in % (as of Q3 2018 LTM)
RED ARROW STUDIOS | 1. GERMAN CONTENT ECOSYSTEM
INCREASE CONTENT FEED FOR LOCAL COMMISSIONS BY RED ARROW STUDIOS
13%
2023+
2018
TARGET SHARE
CURRENT SHARE
ESTABLISH “STUDIO MODEL”
With talent and independent production companies in Germany to expand Red Arrow Studios’ economic scale
CONTINUE ACTIVE CONVERSATIONS WITH PRIORITY TALENT & TARGETSFOCUS GENRES: ENTERTAINMENT, FICTION, FACTUAL
Significant increase planned
BUILD-&-BUY APPROACH
Build-out RedSeven, establish new companies, and execute selected M&A across key and complementary genres
OVERALL DEALS WITH CREATOR TALENT
Writers, actors, directors
>30%
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LOCAL EXPERTISE FOR THE GERMAN MARKET…
1) U.S. format version Basis: all German TV households, A 14-49, Mon-Sun, 3-3 hSource: TV Deutschland GmbH with AGF in cooperation with GfK/videoScope/ProSiebenSat.1 TV Deutschland
RED ARROW STUDIOS | 1. GERMAN CONTENT ECOSYSTEM
RED ARROW STUDIOS WITH TRACK RECORD OF LOCAL SUCCESS
P7S1 OTHER TV STATIONS
Season 2 (16 episodes) on ZDF Season 2 (8 episodes)
Up to
12.0%
Up to
9.1%Upcoming
Up to
13.4%
Up to
11.5%
Season 9 (7 episodes)Season 6 (9 episodes) Season 16 (12 episodes)1) on VOX Season 1 (3 episodes) on VOX
Season 2 (80 episodes) on RTL IISeason 5 (8 episodes)
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BROAD CUSTOMER BASE
… ANCHORED BY A LEADING GERMAN PRODUCTION COMPANY
DIGITAL KNOWHOW
DIVERSIFIED FORMAT PORTFOLIO
Launch of a Brand & Digital Studio enabling new business opportunities (e.g., marketing services for McDonalds, Sony PlayStation, ING DiBa, Samsung and ABOUT YOU)
Excellent format mixture from strong format licenses (e.g., Germany’s Next Topmodel by Heidi Klum), Red Arrow Studios’ catalog (e.g., Married at First Sight) and self-developed ideas (e.g., Galileo Big Pictures)
~25%Revenue
CAGR from 2012-20183)
~300Employees at
2 HQs
70%Returningproduction
rate2)
~50%of revenues
generated with original content1)
RED ARROW STUDIOS | 1. GERMAN CONTENT ECOSYSTEM
1) 50% of Redseven revenues (as of Q3 2018 LTM) were generated with formats owned by Red Arrow Studios or Redseven2) % of revenues with returning productions (as of Q3 2018 LTM) 3) As of Q3 2018 LTMNote: Leading TV producer according to DWDL producer ranking
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Copyright: ProSieben/Willi Weber
MOREOVER WE CONTINUE TO GROW INTERNATIONALLY
RED ARROW STUDIOS | 2. EXPAND INTERNATIONAL FOOTPRINT
BALANCED MIXTURE OF NEW AND RETURNING SHOWS DRIVES ONGOING SUCCESS
SCRIPTED REALITY ENTERTAINMENTFACTUAL
ENTERTAINMENT FACTUAL
Season 9 (10 episodes) (USA)
Season 13 (8 episodes) (UK)
Season 4 (10 episodes) (USA)
Feature Documentary (USA)
Season 2 (8 episodes) (UK) Season 2 (20 episodes) (GER)
Season 2 (5 episodes) (UK)
Season 4 (8 episodes) (USA)
Season 6 (9 episodes) (GER)
Season 1 (21 episodes) (Israel)
Feature Film (UK)
Season 16 (12 episodes) (USA)
Season 7 (17 episodes) (USA)
Season 1 (6 episodes) (USA)
Season 1 (8 episodes) (DK)
Season 3 (15 episodes) (USA)
Season 7 (18 episodes) (USA)
Season 3 (3 episodes) (GER)
Season 5 (10 episodes) (USA)
Season 1 (6 episodes) (USA)
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EXTENSIVE PROJECT PIPELINE
RED ARROW STUDIOS | 2. EXPAND INTERNATIONAL FOOTPRINT
WE HAVE VARIOUS NEW PICK-UPS AND DISTRIBUTION DEALS TO HIGHLIGHT
NEW PICK-UPS EXTENDED NEW PICK-UPS
Season 5 (10 episodes)
Season 2 (5 episodes) Season 2 (8 episodes)
Season 1 (3 episodes)
Season 1 (8 episodes)
Season 1 (5 episodes)Season 1 (30 episodes) Season 4 (8 episodes)Season 5 (10 episodes) (USA)
RED ARROW STUDIOS INTERNATIONAL WITH STRONG DISTRIBUTION PIPELINE DRIVEN BY LONG-TERM, MULTI-WINDOW, LIBRARY-ORIENTED IP INVESTMENTS
WORLDWIDE DISTRIBUTION RIGHTS1)
WORLDWIDE DISTRIBUTION RIGHTS2)
1) Excl. USA; 2) Excl. German-speaking Europe153
Continuously leveraging intra-group synergies and looking for scale opportunities
Top 1 & 2
Non-music YouTube Partner1)
1,334
No. of web channels2)
10BN
Monthly video views2)
>1,100M
No. of YouTube subscribers2)
186M
Monthly engagements2)
44BN
Monthly min watched2)
GLOBAL DIGITAL STUDIO
PLATFORM WITH IMPRESSIVE
TRACK RECORD
1) #1 in Germany and #2 in USA (according to Comscore as of August 2018); 2) September 2018, excl. France; YouTube analytics
RED ARROW STUDIOS | 3. DRIVE & SCALE STUDIO71
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STUDIO71 WITH BROAD PRODUCTION CAPABILITIES
RED ARROW STUDIOS | 3. DRIVE & SCALE STUDIO71
KEY CONTENT PRODUCED FOR INTERNATIONAL CUSTOMERS AND VARIOUS PLATFORMS
1) Digital program of German public broadcaster ARD and ZDF
AdVoD
SVoD/TVoD
TV/Other
Snapchat
FUNK Germany1) History UK Channel
YouTube Red YouTube Germany
155
MULTI-PILLAR POSITIONINGCONTINUOUSLY EXPAND HIGH MARGIN BUSINESS
+50%YTD 2018 vs. YTD 20171)
YouTube ad sales
Licensing & merchan-
dising
Original content
Media sales
Branded solutions
Margin potential
… growth in U.S. content syndication revenues
5xU.S. media sales in 2018
compared to 2017
… merchandising revenue growth expected
… increase of U.S media sales on YouTube through brand-
safety infrastructure
… various examples for expansion of ancillary activity with key talent (e.g., Binding
of Isaac card game, event tour with VictoriaSarina)
+20% FY 2018 vs. FY 2017
1) YTD as of September
RED ARROW STUDIOS | 3. DRIVE & SCALE STUDIO71
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THREE THINGS TO REMEMBER
RED ARROW STUDIOS
OPTIMIZE THE POTENTIAL OF ORIGINAL PROGRAMMING
IN THE GERMAN MARKET
GROW OUR INTERNATIONAL FOOTPRINT WITH A FOCUS
TO BUILD AND RETAIN RIGHTS AND IP
DRIVE GROWTH OPPORTUNITIES FOR STUDIO71 WITHIN
THE GROUP AND ACROSS THE GLOBAL DIGITAL MARKET
GERMAN CONTENT ECOSYSTEM
INTERNATIONAL FOOTPRINT
SCALE GLOBAL STUDIO71
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KEY ACTIONS EXECUTED BY 2019
RED ARROW STUDIOS
GERMAN CONTENT ECOSYSTEM
▪ NEW GENRE COMMITMENTS WITH FOCUS ON EXPANSION OF SCRIPTED CONTENT
▪ SECURE NEW TALENT PARTNERSHIPS AND OPEN NEW INTERNATIONAL FORMAT PIPELINE WITH RAS PARTNER COMPANIES
▪ CONTINUE BOLT-ON ACQUISITIONS IN STRATEGICALLY MOST IMPORTANT AREAS
INTERNATIONAL FOOTPRINT
▪ ROLL-OUT STUDIO PRODUCTION STRATEGY TO SECURE KEY IP AND LONG-TERM REVENUE STREAMS
SCALE GLOBAL STUDIO71
▪ CONTINUE TO SCALE AND GROW REVENUE MIX TO HIGHER MARGIN ACTIVITIES SUCH AS MEDIA SALES, BRANDED CONTENT, MERCHANDISING AND CONTENT CREATION TO ACHIEVE OVERALL MARGIN EXPANSION
E5
DISCLAIMER
This presentation contains "forward-looking statements" regardingProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group,including opinions, estimates and projections regardingProSiebenSat.1's or ProSiebenSat.1 Group's financial position, businessstrategy, 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 actualresults, performance or achievements of ProSiebenSat.1 orProSiebenSat.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 ofthe date of this presentation and are based on numerous assumptionswhich may or may not prove to be correct.
No representation or warranty, expressed or implied, is made byProSiebenSat.1 with respect to the fairness, completeness, correctness,reasonableness or accuracy of any information and opinions containedherein. The information in this presentation is subject to changewithout notice, it may be incomplete or condensed, and it may notcontain all material information concerning ProSiebenSat.1 orProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation topublicly update or revise any forward-looking statements or otherinformation stated herein, whether as a result of new information,future events or otherwise.