Company Outlook

Due to the positive market forecasts for the entertainment business and the consistent diversification and transformation of the Group, we anticipate further growth in revenues in 2018. Meanwhile, the ProSiebenSat.1’s profitability/adjusted EBITDA margin is expected to remain in the mid 20 percent range. We are aiming to achieve an average increase in revenues in the mid single-digit percentage range per year by 2022.

New segment structure

ProSiebenSat.1 Group is driving forward its digital transformation and has bundled its portfolio in the three pillars of Entertainment, Content Production & Global Sales and Commerce since the beginning of 2018 (Fig. 112). In this way, the Group is reacting to the dynamic environment and improving its positioning for further profitable growth. As part of this realignment based on a three-pillar strategy, the Group also intends to achieve a net savings potential of over EUR 50 million by 2019/2020, which will entail an improved cost development in the Entertainment segment despite further investments in programming and in areas such as AdTech and data. The new segment structure is reflected accordingly in this Company Outlook. Organization and Group Structure, Opportunity Report

112 / New Segment Structure since January 1, 2018

Forecast for 2018

The market forecasts for our entertainment business are positive. At the same time, we have set the course for a successful future with the further diversification and transformation of ProSiebenSat.1. We therefore expect to increase our consolidated revenues further in 2018 (Fig. 113). Meanwhile, the Group’s profitability/adjusted EBITDA margin is expected to remain at the previous year’s high level in the mid 20 percent range. With regard to adjusted net income, the Group anticipates a conversion rate of adjusted EBITDA to adjusted net income at the high level of the previous year, too. Additional contributions from acquisitions that may take place this year are not yet reflected in this financial outlook. Opportunity Report

ProSiebenSat.1 is pursuing a long-term financing policy for its M&A activities with a target range for the leverage ratio of 1.5 to 2.5, which the Group will also maintain in the future. At the same time, ProSiebenSat.1 is continuing its earnings-oriented dividend policy. The aim is to pay 80% to 90% of adjusted net income as a dividend each year. The ProSiebenSat.1 Share

In the Entertainment segment, we anticipate a low increase in revenues in 2018, also leading to a low increase in adjusted EBITDA. We also still expect to maintain our leading position with regard to audience shares in the advertising-relevant target group of 14- to 49-year-olds at a high level. In the Content Production & Global Sales segment, we anticipate significant increases in both revenues and adjusted EBITDA in 2018. For the Commerce segment, we are forecasting a low decrease in external revenues and a medium decline in adjusted EBITDA. (Fig. 114)

Mid-term financial targets

At its Capital Markets Day on December 6, 2017, ProSiebenSat.1 applied its current financial targets for 2018 to new medium term revenue growth and margin ranges. The Group expects to continue its profitable growth and is aiming to achieve an average increase in revenues in the mid single-digit percentage range per year by 2022. At the same time, the Group anticipates a further increase in operating earnings and a profitability in the mid 20 percent range based on the adjusted EBITDA in the medium term.