The ProSiebenSat.1 Share

ProSiebenSat.1 pursues an earnings-oriented dividend policy: The Executive Board and Supervisory Board intend to propose a dividend payment of EUR 1.93 per share for the financial year 2017 to the Annual General Meeting on May 16, 2018. This results in an attractive dividend yield of 6.7% of the closing price of the ProSiebenSat.1 share at the end of 2017.

Development of Stock Markets

The stock markets’ upward trend of recent years also continued in 2017. In particular, the positive economic development in EU member states and the European Central Bank’s (ECB) low interest rate policy supported the stock markets. The leading index, the DAX, closed the 2017 trading year at 12,918 points, representing an increase of 12.5%. The DAX peaked in November at 13,479 points. The relevant sector index for European media stocks, the EURO STOXX Media, was particularly volatile in the second half of the year and closed at 230 points, representing an increase of 4.3%. Economic Development

ProSiebenSat.1 on the Capital Market

Over the course of 2017, however, media stocks in general and also the ProSiebenSat.1 share (ISIN: DE000PSM7770; WKN: PSM777) significantly underperformed the leading DAX index (Fig. 027). As of December 31, 2017, the weighting in the DAX was 0.63%.

027 / Price performance of the ProsiebenSat.1 Share

While the ProSiebenSat.1 share performed better than the market in the first months of 2017, the publication of the figures for the first quarter of 2017 led to price decreases: Besides the adjusted forecast for the German TV advertising market on May 11, 2017, the ex-dividend of EUR 1.90 on May 15, 2017 also had an effect. The development of the advertising market in Europe and Germany fell short of expectations as the year went on, causing major advertising agencies to revise their revenue forecasts in August. Against this backdrop, ProSiebenSat.1 Group also had to make further adjustments to its forecasts, which in combination with a lower valuation of the media sector as a whole reinforced the price decline. Uncertainties about the future of linear television also had negative effects on share performance. The share made gains again at the end of the year. Among other things, analysts and investors had their confidence strengthened by the Group’s realignment on the basis of a three-pillar strategy presented at Capital Markets Day (CMD) on December 6, 2017 and the confirmation of the forecast for the fourth quarter. In this context, the ProSiebenSat.1 share closed the 2017 trading year at EUR 28.71. The Year 2017 at a Glance, Strategy and Management System

A majority of analysts (44%) recommended the share as a buy. At the end of the year, another 40% were in favor of holding the share (Fig. 029).  At the end of 2017, a total of 25 brokerage firms and financial institutions actively analyzed the ProSiebenSat.1 share and published research reports. Recommendations by financial analysts are an important basis for decision making, particularly for institutional investors. The analyst assessments – especially following ProSiebenSat.1’s Capital Markets Day – indicate the share’s price potential. The analysts’ median price target at the end of the year was EUR 32 (previous year: EUR 45).

029 / Analysts’ Recommendations in %

Shareholder Structure of ProSiebenSat.1 Media SE

The shareholder structure is almost unchanged compared to December 31, 2016. ProSiebenSat.1 shares are mostly held by institutional investors in the US, the UK and Germany. As of December 31, 2017, 21% of the shares were held by private shareholders (December 31, 2016: 10%). In total, 98.3% were held in free float as of December 31, 2017 (December 31, 2016: 98.2%). (Fig. 030)

In 2017, the Group also covered its refinancing requirements on the bank and bond market. Further information on the financing structure can be found in the “Borrowings and Financing Structure” section.

In order to promote the shareholder culture within ProSiebenSat.1 Group and strengthen employees’ identification with the Company, a share-based incentive system was developed by the Company in June 2016 (“MyShares”). In addition to their own investment in ProSiebenSat.1 shares, employees who take part in this system also participate in a tax-free subsidy in the form of subsidized investment shares and a long-term matching component. Over 2,000 employees, corresponding to 45% of all eligible employees, participated in the two MyShares tranches issued to date in 2016 and 2017. As of December 31, 2017, they held 78,348 shares in total.

Annual General Meeting for the Financial Year 2016

The Annual General Meeting of ProSiebenSat.1 Media SE for the financial year 2016 took place on May 12, 2017. Over 900 participants attended the Annual General Meeting. Attendance was approximately 63% of share capital. Distribution of a dividend of EUR 1.90 per share for the financial year 2016 was approved at the Annual General Meeting. The total payout therefore amounts to around EUR 435 million; the payout ratio is 84.7% of Group adjusted net income and is thus in line with our communicated dividend policy. The dividend was paid out on May 17, 2017. Report of the Supervisory Board, Compensation Report

With a dividend yield of 5.2% – based on the 2016 closing price and a dividend payment of EUR 1.90 per dividend-entitled share – the ProSiebenSat.1 share was among the top stock in the DAX (previous year: 3.8%).

Capital Market Communication

We provide our shareholders with regular information on all key events and developments at ProSiebenSat.1 to ensure the transparent communication of our financial figures and growth prospects. On the website www.prosiebensat1.com/en/, all relevant company information is published in German and English promptly and on an ad-hoc basis if necessary. Further tools for providing extensive information to the capital market are press conferences and events for investors and analysts. In addition to 22 road shows, ProSiebenSat.1 also presented itself at 21 investor conferences in Europe and the US in 2017. Another important event is the regular Capital Markets Day, at which the Group explains its growth strategy. The Investor Relations activities are complemented by the ProSiebenSat.1 investor hotline. The Year 2017 at a Glance

Numerous awards attest to the high-quality content of ProSiebenSat.1 financial reporting and the Company’s transparent financial communication. (Fig. 032)