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Capital Markets Day – December 6, 2017
ROUNDTABLE PRESENTATIONS
DIGITAL COMMERCE PLATFORMSClaas van Delden, Mark Klimmek, Dr. Florian Tappeiner
WE’VE BUILT MULTIPLE LEADING COMMERCE PLATFORMS
1) Germany, Switzerland and Austria 2) Over-the-counter (prescription-free medical products) 66
Selection only
#2 cross-vertical Online
Comparison Portal
#1 match-making
platform in GSA1) region
Germany’s leader in
gift vouchers
Leading German OTC2)
platformin mass
retail
Fastest growing online
beauty platform
Only lifestyle brand in sensual wellness
DEEP DIVE: VERIVOX
67
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
#2 cross-vertical Online Price Comparison portal
Majority investment: 2015
P7S1 stake: 79%
Other shareholders: Oakley Capital, founders, management
Management team:
Chris Öhlund | CEO
Christoph Jennen | CFO
Klaus Hufnagel | COOAmorelie6
VERIVOX IN NUMBERS
1) Excluding Preis24 68
Market position in GSA region
#2
EBITDA CAGR 2014–2017E1)
>20%
Customers served since 1998
>8m
1
VERIVOX HELPS CONSUMERS SAVE MONEY
1) Customer Acquisition Cost 69
Business model
EXAMPLE: ENERGY VERTICAL
2
Verivox compares tariffs of providers
5
Verivox sends contract data to provider
6
Provider pays commission to Verivox
1
Consumer enters product requirements
3
Consumer selects best tariff
4
Consumer finalizes and transmits
application
Consumer
Motivation – Compare prices to save time and
money
Compares >29,000 tariffs of 1,000+ providers for transparent market overview
Motivation – Generate revenues through commissions, advertising, and B2B services
Provider
Motivation – Success-based, low-cost sales
channel (~40% savings in CAC1))
1
VERIVOX WITH A STRONG CONSUMER PROPOSITION
1) Estimated savings vs. assumed previous contract expenses 70
>2.0bn
“YOUR TARIFF EXPERTS. COMPARE WITH US &
SAVE.”
EXPERIENCED RELIABLE TRANSPARENT
AWARD-WINNING TRUSTED CONSUMER
BRAND
64x HONOREDSINCE 2008
EUROS SAVED BY CONSUMERS
USING VERIVOX1)
1
German Online Price Comparison (OPC) market [2016 and 2021E by segment]
Market in 2021E: EUR ~1.0bn
GERMAN OPC MARKET TO GROW SIGNIFICANTLY
1) EUR >1m revenuesSource: Bundesnetzagentur; Deutsche Bundesbank; market intelligence
71
BankingTelCo InsuranceEnergy
Market in 2016: EUR ~0.6bn
Other
1
Active1) since: >10 yrs >3 yrs >2 yrs>16 yrs
[in EUR, 2015]
UK CONFIRMING VERIVOX’ SIGNIFICANT GROWTH POTENTIAL
1) Player 5: uswitch 2) Energiewirtschaftsgesetz – EnWG, 2005 3) Estimate 4) Increasing to EUR 1.5-2.0 in past two yearsSource: P7S1 market model; Destatis; OC&C; Roland Berger; Greenhill; market intelligence
72
OPC REVENUES PER HOUSEHOLDMARKET COMPARISON ENERGY:
UK VS. GERMANY
34
15
x 2.3
# of market players with EUR >80m revenues: 2
# of market players with EUR >80m
revenues: 41) Year of deregulation
Average spent on TV media last 5 years (p.a.)3)
Growth of number of switchers in past 5 years
Switcher in % of all households
1999
EUR ~4 per household
~ +20%
~17%
20052)
EUR ~14)
per household
~ +25%
~11%
Traffic and frequency of usage are key drivers for future growth
1
STRATEGIC ACQUISITIONS TO DRIVE MONETIZATION
73
LEADING MULTI-BANKING APP
#2 CROSS-VERTICAL ONLINE COMPARISON
PORTAL
GERMANY’S LEADING ONLINE CANCELLATION
SERVICE
“Drive frequency”“Drive monetization”“Increase traffic”
>5m cancellations p.a.
1
OPPORTUNITY TO BUILD FIRST PAN-EUROPEAN OPC
1) Share of purchases using OPC websitesSource: Google consumer barometer survey of internet users 2014/15: >1,500 people surveyed about their last purchase of car insurance
74
Verivox Case Study
Several M&A targets to
become available in upcoming 24
months
1
OPC PENETRATION BY COUNTRY1)
[in %]
242526
33
41
52
AND WE KNOW HOW TO SCALE OPC BUSINESSES
1) Exemplary in Energy vertical, extrapolated for 2017 based on YTD growth 2) Property & Casualty 75
1
BRAND AWARENESS
+63%
Mar 2017Dec 2014
[indexed, 2014 = 100%]
CONVERSION RATE1)
Energy: Entered SME and industrial segment
TelCo: Acquired Preis24 to strengthen TelCo vertical
Insurance: Built own P&C2)
calculators for products beyond cars
International: Launched Verivox Switzerland
DIVERSIFICATION
+37%
20152014 2017E2016
VERIVOX FIRST OPC SUPPLIER OFFERING TARIFF COMPARISON VIA VOICE WITH AMAZON’S ALEXA
DEEP DIVE: PARSHIP ELITE GROUP (PEG)
76
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
#1 matchmaking platform in GSA
Majority investment: 2016
P7S1 stake: 50% +1
Other shareholders: Oakley Capital, management
Management team:
Tim Schiffers | CEO
Henning Rönneberg | COO
Marcel Schachtel | CTOAmorelie6
PARSHIP ELITE GROUP IN NUMBERS
77
Market position in GSA
#1
EBITDA CAGR 2014-2017E
45%
Babies born to Parship &
ElitePartner couples
>100k
2
VIRTUOUS CIRCLE HELPS EXPAND MARKET LEADERSHIP
1) Germany, Switzerland and Austria 78
Business model
2
Strong brands
Highest share of ad and efficient marketing
Largest database of users in GSA1)
Optimized conversion of online (brand) traffic
Best in class user monetization
Combined with
Leads to
Enables
As basis for
OUR TWO COMPLEMENTARY STRONG BRANDS …
1) Based on Parship customer survey, 2016 79
The biggest and most experienced matchmaking service
The premium matchmaker for academics and high-class singles
2
1)
[top of mind, Germany]
… HAVE A SUPERIOR BRAND POSITIONING …
Source: Kantar TNS Brand Awareness Tracking Online Dating 80
2017201420102009 201320122011
2
ONLINE DATING BRAND AWARENESS
1) In 2016, GSA 81
2
Price High Free
Sex/affair
Flirt/date
Relation-ship
Intention of members
Casual dating
Online matchmaking (OMM)
Single platforms
Market Size1):
EUR >250m
Highest willingness to pay
Lowest substitution risk from free players
Highest customer lifetime value
… AND ARE LEADING IN MOST ATTRACTIVE SEGMENT ONLINE MATCH MAKING
GERMAN MARKET YET WITH STRONG UPSIDE POTENTIAL
1) Market = Singles aged 25-55 (~80% of Parship users), at least ‘weiterführende Schule/ Mittlere Reife’ (~90% of Parship users), looking for a serious relationship 2) Only French & German-speaking Switzerland consideredSource: EY consumer survey 2016; management information; JP Morgan
82
2
[in % of respondents, 2016]
ONLINE MATCHMAKING MARKET PENETRATION1)
[Avg. marketing spend per capita 2015-2017E, in EUR]
PEG MARKETING SPEND
21
15
x2272) 1.5
0.7
x3
0.5
Note: Statements may vary due to roundingSource: EY consumer survey 2016; management information/analysis
83
2
[% of respondents, Germany, 2016]
ADOPTION OF ONLINE DATING BY AGE GROUP
[% share of age group among total subs,Germany]
PARSHIP FIRST-TIME SUBSCRIBERS BY AGE GROUP
66
1213
15
19
18-29 70+60-6950-5940-4930-39
Age group
39
2012
35-44
45+
26
36
18-34
2016
30
40
30
17%
16%
28%
CAGR ’12-’16
>50% mobile
registrations
MILLENIALS TO DRIVE ONLINE MATCH MAKING GROWTH IN THE FUTURE
UNIQUE INCREASE IN CUSTOMER MONETIZATION
1) Customer Lifetime Value in revenue 2) Cost Per New CustomerSource: Management information/analysis
84
2
Parship CLV1) and CPNC2) in GSA[indexed, 2012 = 100]
169159
151139
118
100
129120113111109
100
2016 2017E201520142012 2013 CLV CPNC
CLV: 11%
CPNC: 5%
CAGR ’12-’17E
DEEP DIVE: JOCHEN SCHWEIZER MYDAYS GROUP
1) Shares held through Jochen Schweizer Beteiligungs GmbHNote: Majority investment in mydays with subsequent acquisition of Jochen Schweizer in 2017
85
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
Germany’s leader in gift vouchers
Majority investment: 2013 (mydays) & 2017 (J. Schweizer)
P7S1 stake: 90%
Other shareholders: Mr. Jochen Schweizer1)
Management team:
Fabian Stich | CEO
Florian Herschke | CFO
Lars Brinkmann | CTOAmorelie6
JOCHEN SCHWEIZER MYDAYS GROUP IN NUMBERS
1) CAGR based on normalized EBITDA 86
Market position in GSA
#1
EBITDA CAGR1)
2015–2017E
>50%
Contracted providers
>3,000
3
Want to find the right experience/gift easily from
large set of options
CONNECTING CONSUMERS WITH EXPERIENCE PROVIDERS
87
Business model
3
CUSTOMERS PROVIDERS
Fragmented providerstructure with choice of
>4,300 experiences
THEMED SHORT TRIPS
CULINARY EXPERIENCES
SPORTS & ACTION
EXPERIENCE BOXES
TWO BRANDS WITH COMPLEMENTARY POSITIONING
88
Two brand strategy
3
Leading in emotional experiences Leading in adrenalin experiences
Acquisition closed in October 2017
“Soft & emotional” “Strong & rational”
Experience specialist market [by commission and segments in Germany, 2016]
LEADING THE EXPERIENCE SPECIALIST MARKET
Source: Euromonitor 89
Wellness & lifestyle
Sports & action
Music & sport events
>3%
Others
>23%
>49%>35%
Culinary experiences
>20%
Themed short trips
3
Market size:EUR ~420m
SIGNIFICANT SYNERGIES FROM MERGER
90
3
OperationsRevenue upside
Performance marketing
Efficiency gains
Revenue split by distribution channel[in %, 2016]
STRONG OMNICHANNEL DISTRIBUTION FOOTPRINT
1) mydays listed in >7,000 retail POS 91
3
45 own retail shops
Listed in >5,000 retail POS
Online
Offline
100%
>151)
>35
DEEP DIVE: WINDSTAR
1) Not part of management 92
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
Leading German OTC platform in mass retail
Majority investment: 2016
P7S1 stake: 92%
Other shareholders: Founders1)
Management team:
Thomas Weiß | CEO
Wolfgang Hahn | Managing director
Dr. Andreas Bender | Managing directorAmorelie6
WINDSTAR IN NUMBERS
1) Market position in branded and private label mass market segments 2) >50 brands in innovation pipeline 93
Market position in GSA region1)
#2
Revenue CAGR 2015–2017E
12%
# of active brands in portfolio2)
>5
4
PRIVATELABEL (PL) OTC
BRANDEDOTC
LEADING GERMAN OTC PLATFORM IN MASS RETAIL
94
Business model
Contract manufacturer
Drugstores/ grocery
Consumers
WINDSTAR (WSM) AS CATALYST FOR THE NUCOM GROUP’S OMNICHANNEL APPROACH
4
MAJOR TRENDS FUELING CONTINUED GROWTH IN OTC
95
Growing interest in
self-medication
Overall drugstore
outlet expansion
Trend towards
prevention and wellness
Increasing offline to
online shift
Aging population
Channel dynamics Consumer dynamics
4
HIGHLY FRAGMANTED & LARGE MASS MARKET SEGMENTS
96Source: Desk research; dm-Extranet; management information/analysis; Nielsen panel; BAH report 2014; Nielsen Promarcon report
Private label mass market [in % of total market, Germany, 2016]
Branded mass market [in % of total market, Germany, 2016]
Other69
16
153
Other
5
1418
11
215
22
Total market: EUR ~360m Total market: EUR ~640m
4
DRUGSTORE OUTLET EXPANSION IN GERMANY– EXAMPLE: DM –
[# of stores, Germany]
OUTLET EXPANSION SUPPORTING UNDERLYING GROWTH
Source: Desk research; management information/analysis; IPSOS survey 04/2017 97
936
2016
1,825
2013
1,480+8% p.a.
1,185
20102007
4
TV AS KEY BRAND GROWTH LEVER FOR WINDSTAR
Source: IPSOS survey 04/2017 98
[TV impact, example SOS, 04/2017]
Brand awareness
+15%Purchase intent
+23%
SOS TV CAMPAIGN IN 2017 PROVEN TV IMPACT
4
Revenue growth by brand[growth in %, 2014-16]
SOS BRAND OUTPERFORMS ITS OTC COMPETITORS …
Source: Nielsen 99
-10
8
3032
4046
66
4
No revenue sharing and high customer ownership
… AND HAS ESTABLISHED A STRONG ONLINE PRESENCE
Existing online presence and easy customer access
Existing relationshipswith retailers
Largest online retailer and full service offering
100
4
DEEP DIVE: FLACONI
101
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
Fastest growing online beauty platform
Majority investment: 2015
P7S1 stake: 100%
Other shareholders: -
Management team:
Dr. Steffen Christ | COO
Thomas Faschian | CCO
Kathrin Nusser | CFOAmorelie6
FLACONI IN NUMBERS
Note: Market position based on eCommerce revenues in Germany 102
Market position in GER
#2
Revenue CAGR 2014-2017E
103%
# of brand listings
>450
5
FLACONI IS A LEADING ONLINE BEAUTY DESTINATION
1) Selection only 103
Business model
CUSTOMERS BRANDS1)
FRAGRANCES
COLOR COSMETICS
SKINCARE
BEAUTY ACCESSORIES
ONLINE
FRAGRANCES
5
STRONG OFFLINE-TO-ONLINE SHIFT DRIVING GROWTH
Source: Institut für Handelsforschung 104
Addressable online market[Germany, in EUR bn]
Beauty & Care market[Germany, in EUR bn]
Online market mainly premium
Premium is the addressable market for Flaconi
2016
Offline 12.7
Online1.2
13.9
9% 17%Online
penetration
1.2
2.4
2016 2020E
+19% p.a.
5
Share of repeat customers[by cohorts, in %]
HISTORIC COHORTS SUBSTANTIATE GROWTH AMBITIONS
105
Year 3 after initial purchase
Year 2 after initial purchase
+14
+18+20
Year 1 after initial purchase
2014 201520132012
More recent cohorts with systematically higher
repurchasing rates
Year of first purchase:
Strong cohort loyalty after year 1
5
PREMIUM BRANDS DRIVING FLACONI’S GROWTH
1) Based on value in EUR, YTD September 2017 106
5
Development of brand listings[in numbers]
Flaconi increasingly important partner for beauty industry
Impressive fulfillment capabilities of Flaconi to optimize customer
experience
Premium wrapping for ‘Scandal!’ perfume
368
283
>450
2015
+60%
2016 2017
FUTURE POSITIONING AS BEAUTY & CARE DESTINATION
107
BEAUTYCreate the online destination for luxurious beauty products
INSPIRATIONProvide meaningful and targeted recommendations
OWN BRANDExpand influence by developing own products based on consumer dataSneak preview
5
DEEP DIVE: AMORELIE
108
J. Schweizermydays Group
Parship Elite Group
Verivox
2
1
3
Windstar4
Flaconi5
Only lifestyle brand in sensual wellness
Majority investment: 2015
P7S1 stake: 75%
Other shareholders: Founders
Management team:
Lea-Sophie Cramer | Founder & CEO
Sebastian Pollok | Founder & CCO
Talip Yenal | CFOAmorelie6
AMORELIE IN NUMBERS
1) Based on 2017E revenue share 109
Market position in GSA
#2
Revenue CAGR 2014-2017E
92%
Share of private label brands1)
>40%
6
AMORELIE IS A LEADING SENSUAL LIFESTYLE PLATFORM
1) Such as the ‘Adventskalender’ 2) Selection only 110
Business model
ONLINEOFFLINE RETAIL
DIGITAL PLATFORMS
DIRECT SALES
3rd PARTY BRANDS
OWNBRANDS
CUSTOMERS BRANDS2)
LOVE TOYS
LINGERIE
BODY & CARE
DISCOVERY BOXES1)
6
ONLINE MARKET EXPECTED TO GROW BY 11% PER YEAR
1) Market for sexual wellness productsSource: TrendMonitor; Globometer
111
Online market[Germany, in EUR bn]
Total addressable market1)
[by distribution channel, in EUR bn]
Online penetration expected to increase to 32% until 2020
Offline market growing at 6% p.a. providing additional source of growth
1.2
0.9
0.3
2016
Online
Offline
26% 32%Online
penetration
+11% p.a.
2020E
0.5
2016
0.3
6
[Google Trends] [organic desktop traffic, Germany]
STRONG AMORELIE BRAND WITH SUSTAINABLE TRAFFIC
Source: YouGov 2017 YTD; Similarweb July 2017 112
0
10
20
30
40
50
60
70
80
90
100
110
Eis.de AmorelieBeate Uhse
6
BRAND INTEREST ORGANIC SEARCH TOP 4 PLAYERS
24%
38%
14%
24%
Amoreliecaptures
38% of all organic search
requests
STRONG OMNICHANNEL DISTRIBUTION FOOTPRINT
113
Direct sales
>10 private label brands online
Large digital sales platforms
Listed in >2,000 retail POS
Selection only
UNIQUE OMNICHANNEL FOOTPRINT IN THE INDUSTRY – NO COMPETITOR WITH SIMILAR POSITIONING
Selection only
6
JOURNEY TO SENSUAL LIFESTYLE BRAND INITIATED
114
INTENSECreate positive & intensified experiences
SENSUALTrigger senses in a meaningful way
INDIVIDUALHighlight personality and values
HAPPYFeel the lightness & bliss of the moment
Sneak preview
6
DISCLAIMER
This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regardingProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objectivesof management and future operations. Such forward-looking statements involve known and unknownrisks, uncertainties and other important factors that could cause the actual results, performance orachievements 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. Theseforward-looking statements speak only as of the date of this presentation and are based on numerousassumptions which may or may not prove to be correct.
No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to thefairness, completeness, correctness, reasonableness or accuracy of any information and opinionscontained herein. The information in this presentation is subject to change without notice, it may beincomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 orProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise anyforward-looking statements or other information stated herein, whether as a result of new information,future events or otherwise.
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