Red Arrow

The power of television

Capital Markets Day – October 13, 2016

Red Arrow Jan Frouman | October 13, 2016 |

We engage audiences worldwide

| October 13, 2016 |

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We are raising our 2018 target by EUR 100m Revenue target [in EUR m]

470

+31% CAGR

370

+100m

303

95

2012

H1 2016 LTM

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Old 2018 target

1) New 2018 revenue growth target: +EUR 375m

New 2018 target1)

3

Continuously improving KPIs

Number of productions1)

Number of hours produced

Number of returning shows2)

Returning shows’ rate3)

Shows in the catalogue4)

Number of int’l sales clients4)

330+

1,200+

130+

65%

870+

240

vs. 230+ in H1 2015

vs. 860+ in H1 2015

vs. 60+ in H1 2015

vs. 49% in H1 2015

vs. 800+ in H1 2015

vs. 225 in H1 2015

Continuous improvement in all operational KPIs

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1) Incl. pilots, new and returning productions, multiple seasons counted as separate productions 2) Returning shows with revenues booked in H1 2016 3) % returning shows as of revenues 4) Cumulative 2010 to 2016 Note: All figures referring to H1 2016 vs. H1 2015 if not stated otherwise

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Extended footprint in financially essential US market High-quality US investments New

New

US accounts for New1)

New

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72% of our total revenues2)

1) Minority investment 2) Share of H1 2016 LTM external revenues generated by US production entities

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Key strategies and growth plan

1

Expand and organically grow US portfolio of production companies

2

Create and own new blockbuster formats

3

Leverage synergies with German TV channels (BC GS)

4

Expand digital production capabilities and synergies with digital assets

5

Build an integrated Digital Content Ecosystem around thematic verticals

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1 Continue to build scale with smart US-centric acquisitions US market forecast 2015-2020E Est. programming spend of TV broadcasters1) [in EUR bn]

US investment strategy Majority and minority bolt-on investments with path to control and 5-7 year partnership model

+4%2) CAGR

33

2015

39

38

2018E

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2020E

Secure access to globally attractive English-language scripted and nonscripted high-quality IP and assets Transactions based on accretive valuations and margins to create a healthy, non-cannibalizing portfolio

1) Source: SNL Kagan (incl. basic cable channels without sports rights, premium channels and broadcast stations; homeshopping and RSN not included) 2) Deviations due to rounding

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2 Diversified production and customer portfolio Diversified slate of new and returning shows in all genres …

… catering to 200+ broadcasters and platforms worldwide

S3 already commissioned

FICTION

REAL REALITY

Sold to 10+ territories

SOCIAL EXPERIMENTS

Sold to 24+ territories

FACTUAL

Produced in 30+ countries

Build-up strong IP assets and create new blockbuster formats for long-term sustainable value | October 13, 2016 |

Our formats are produced in

>35 territories

Format ready-mades are sold into

>130 territories

Ø 8-10 new format launches per year

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3 We already account for over 10% of BC GS’s commissioned spendings Increasing share of own productions Red Arrow share of BC GS’s commissioned content [as % of commissioned spendings]

>20%

Joint format development process with BC GS

Launched YTD 20161) “Ran an den Mann”

Pipeline 2016/2017 Up to

11.2%

“So tickt der Mensch”

New

Target 10% 8%

H1 2015 LTM

“Kiss Bang Love”

H1 2016 LTM

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Up to

14.1%

“The Taste”

New season

2018E

1) Base: All German TV households (German-speaking), A 14-49 years, Mon-Sun, full day 3-3h

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4 Strong market demand for our digital production units DIGITAL CONTENT HUBS

Optimized synergies between Red Arrow production companies

DIGITAL IP OWNERSHIP

Complement content portfolio with thematically well-targeted channels Three networks already launched

+15 DIGITAL PRODUCTION AND DISTRIBUTION

new intl. platforms vs. PY

New Red Arrow customers

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5 Our vision is to build an integrated Digital Content Ecosystem CONTENT PRODUCTION

THEMATIC PACKAGING

MULTICHANNEL CONTENT DISTRIBUTION

MONETIZATION/ CUSTOMERS

Professional TV content

Thematically focused content

P7S1 thematic digital platforms

Consumers (ads & subscriptions)

Health & wellbeing

Food

Lifestyle & fashion

Thematic TV formats

P7S1 and Media Alliance

Thematic TV channels/windows

TV platforms and broadcasters

Digital content Health & wellbeing

Lifestyle & fashion

Food

Target launch Q1 2017

Target launch Q1 2017

Health & wellbeing

Food

Lifestyle & fashion

Webstar content Media Exchange Beauty

Outdoor

Bridal

Ramp-up digital content production (low cost, high volume) | October 13, 2016 |

Publishers

Monetize globally and feed our entertainment platforms 11

Key actions until 2018

Increase Red Arrow share of BC GS’s commissioned content to >20%

Continue to invest in globally attractive scripted and non-scripted IP

Build an integrated Digital Content Ecosystem around thematic verticals

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