(Non-financial Group Statement in Accordance with Section 289c and Section 315c (1) HGB)

We are aware of our corporate and social responsibility and perceive this as a comprehensive challenge. For ProSiebenSat.1, success not only means sustainably increasing our and growing dynamically. It also implies consistently enhancing the Group’s non-financial performance.

We believe that enterprises that identify opportunities and risks in the field of sustainability at an early stage can also better prevail in competitive markets. After all, the strength of a business strategy cannot just be measured financially; non-financial aspects are also relevant for lasting success. In this context, ProSiebenSat.1 defines sustainable entrepreneurial activity as a comprehensive approach for ensuring both the economic as well as the environmental and social performance of our Group.

Non-financial aspects and sustainability performance indicators particularly come under the area of responsibility of the CFO at ProSiebenSat.1.

In this Group Statement in accordance with section 289c and section 315c (1) of the German Commercial Code (HGB) for the financial year 2017, ProSiebenSat.1 reports on the material non-financial aspects with the corresponding information needed in order to understand the Company’s business development, results and position and the effects of the business activities in this regard (Fig. 046). Material risks for individual non-financial aspects were not identified in this context. Thereby, the Non-Financial Group Statement is combined with the Non-Financial Statement (NFS) of the parent company within the meaning of section 315b (1) sentence 2 HGB.

ProSiebenSat.1 uses the ’s GRI Standards as a basis when preparing the NFS. The GRI sets out guidelines for sustainability reporting as part of a global multi-stakeholder process and provides accounting policies and standard disclosures for the preparation of sustainability reports by companies, irrespective of their size, sector or location. www.globalreporting.org/standards

In accordance with section 317 (2) sentence 4 HGB, the auditor checked that the NFS was presented in line with the legal regulations. The Supervisory Board also commissioned the auditing company KPMG to audit the content of the NFS with limited assurance. The audit opinion dated February 19, 2018, which describes the type, scope and findings of this audit, is reproduced online at www.prosiebensat1.com/en/sustainability/publications/reports and is part of the Annual Report.

046 / MATERIAL Non-financial Aspects at ProSiebenSat.1 Group

Main Non-financial Aspects at ProSiebenSat.1 Group (Graphic)

The audit was conducted using the relevant auditing standards “Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000)” in order to obtain limited assurance with regard to the legally required disclosures in accordance with sections 315b and 315c in conjunction with sections 289c to 289e HGB. www.prosiebensat1.com/en/sustainability/publications/reports

As part of a materiality analysis, we identified four non-financial aspects for ProSiebenSat.1 on which we make disclosures below in accordance with section 289c (3) HGB regarding the concepts followed, the due diligence processes used, the results, and the related performance indicators (Fig. 046). For the required information on the business model in accordance with section 289c (1) HGB, we refer to the below-mentioned Combined Management Report of ProSiebenSat.1 Group. Information on corporate governance can particularly be found in the “To Our Shareholders” section in the Annual Report 2017. All references to content outside the Combined Management Report are to be understood as additional information and not as mandatory part of the NFS. Organization and Group Structure, Group Environment, To Our Shareholders

047 / Scope of Reporting and Data Collection

The organizational reporting framework for the information on concepts and key figures for our sustainability performance as contained in the summarized NFS essentially comprises all Group companies and corresponds to the financial of ProSiebenSat.1 Group, which is managed centrally by ProSiebenSat.1 Media SE. Here, ProSiebenSat.1 follows the principle of operational control, which exists either if there is a majority interest of more than 50% or if ProSiebenSat.1 has full decision-making power over operating business by means of other contractual regulations.

Exceptions and restrictions with regard to the scope of reporting for the individual defined aspects and data collection for performance indicators are described below. Further specifications – particularly for key HR figures – are indicated accordingly in the information on the aspects.

  • Employees and Diversity
    In particular, the companies in the Digital Ventures & Commerce segment and international business in the Content Production & Global Sales segment are not included in the examination of the concepts for the “employees and diversity” aspect or in data collection for the key non-financial figures in some cases. Individual corporate functions or programs such as recruitment and employer branding are managed centrally or are not implemented in this form at some individual investments due to the relatively small number of employees. ProSiebenSat.1 also performs a dynamic portfolio management, meaning that changes in the scope of consolidation are continuously occurring. Due to contract manufacturing, the number of employees in the production sector is characterized by high volatility.
  • Social Responsibility (Public Value)
    The information on public value particularly relates to ProSiebenSat.1’s sustainability-related business activities in the TV program (Broadcasting German-speaking segment). The concepts described also include public value measures that are supported by the Advisory Board of ProSiebenSat.1 Media SE as the governance body and implemented by employees at the Unterföhring site.
  • Product Responsibility and Compliance
    With the management system (CMS), ProSiebenSat.1 largely covers the relevant legal areas throughout the Group and records the performance indicators across all companies. Some individual concepts, such as complying with advertising laws and ensuring journalistic independence, relate only to selected Group companies due to different legal regulations in foreign countries and a lack of relevance to many companies, for example in the production sector. These selected companies primarily include the holding company ProSiebenSat.1 Media SE, ProSiebenSat.1 TV Deutschland GmbH, and the marketing companies SevenOne Media and SevenOne AdFactory. For key figures relating to aspects of product responsibility and compliance, companies acquired by ProSiebenSat.1 are included in data collection no later than in the reporting period in which they have been consolidated in financial reporting for a whole financial year.
Financial result
Is composed of the interest result, other financial result and income from investments accounted for using the equity method.
Global Reporting Initiative (GRI)
The GRI Sustainability Reporting Guidelines offer Reporting Principles and Standard Disclosures for the preparation of sustainability reports by organizations, regardless of their size, sector or location. The Guidelines are developed through a global multi-stakeholder process involving representatives from business, labor, civil society, and financial markets, as well as auditors and experts in various fields.
Scope of consolidation
The full group of entities to be included in the consolidated financial statements.
Compliance is part of corporate governance. It refers to compliance with laws, directives, and voluntary codes within the company.