Ströer SE & Co. KGaA

Investor Presentation • Aug 8, 2024

STROER

Agenda

Group Update

Financials

Outlook

Q2 2024 Market Dynamics: (D)OoH outperforming the Ad Market

German Ad Market with positive Momentum in the second Quarter

Global Points of Reference

[^0]
[^0]: ${ }^{(1)}$ Internal estimates \& ZAW; ${ }^{(2)}$ Alphabet IR; ${ }^{(3)}$ Meta; ${ }^{(4)}$ Nielsen Numbers (gross) for Q2 2024

Results 6M 2024

$\mathrm{m} €$		6M 2023	6M 2024	A
Revenues	Reported growth	864.7	965.0	$+12 \%$
	Organic growth ${ }^{(1)}$	$+7.3 \%$	$+10.3 \%$	$+3.0 \%$ pts
EBITDA (adjusted)		227.2	263.3	$+16 \%$
EBIT (adjusted)		84.3	113.1	$+34 \%$
Net income (adjusted) ${ }^{(2)}$		40.0	54.8	$+37 \%$
Free Cash Flow (adjusted)		$-15.6$	21.7	n/a
Capex		62.8	41.0	$-35 \%$

[^0]
[^0]: ${ }^{(1)}$ Excluding exchange rate effects and effects from (de)consolidation and discontinuation of operations
${ }^{(2)}$ Adjusted for exceptional items and additional other reconciling factors in D\&A (PPA related amortization and impairment losses), in financial result and in income taxes

Accelerating DOoH-Momentum in "normalising Market"! Quarterly \& LTM Development biased by Macro Environment for almost 4 Years

Drop of pre-pandemic LTM by $\sim 35 \%$ to low-point during pandemic; since then, DOoH trippled

DOoH making up $\sim 40 \%$ of OoH Business by End of 2024 Challenging Environment for Ad Market was an additional Catalyst for DOoH

Share of DOoH within our OoH business doubled in the last 4 years

Anti-cyclical long-term Investment into digital Infrastructure pays off Strategic Investments took DOoH to a new Level of Audience Coverage

CAPEX: in absolute terms stable going forward and as share of revenue declining year over year

Qualitative Product Enhancement of DOoH Network going forward Focus on Highlights for Advertisers and Category Drivers

"Domination": e.g. Hamburg main station planned for 2025

"Sustainability": Green Digital since 2023

"Cut Through": Motion Cubes rollout 2024/2025

"Innovation": 3D installations since 2023

On-going quantitative Upgrade of DOoH Network

Optimizing specific Audiences and Locations, Demand-oriented Approach
Current CAPEX-level ensures further expansion of digital footprint for long-term perspectives

Number of Screens / Locations \& Formats	End of 2023	Jun 2024	FY 2024e	H1 2024 (new screens net)
Roadside Premium $\left(>2 \mathrm{~m}^{2}\right)$	1,997	2,076	$\sim+200$	$+79$
Indoor Premium* $\left(>2 \mathrm{~m}^{2}\right)$	5,680	5,767	$\sim+250$	$+87$
Ambient \& owned	13,682	13,928	$\sim+800$	$+246$
Retail (any format) 3rd party	$24,355^{ }$	$25,110^{ }$	opportunistic

Numbers only reflect German OoH Core business
Only high frequency locations: Train Stations, Shopping Malls, Public Transportation Systems
*3rd party results reflect inventory reduction from screens at MediaMarkt and Saturn as of 2024

National Customers bounced back driven by DOoH and Programmatic

Still 2/3 of Ad Inventory (worth $>0.5$ bn net Revenue) filled with Content
Massive potential for further operational leverage

${ }^{(1)}$ OoH Germany Core

Strong \& sustainable Momentum across all Client Industries

Scalable, Award-winning Concepts with Public Video as the Core

TV Plus - pharma

Geofencing \& local targeting - telco

Audio: video collects

Mobile public activation - retail

Gold Standard Case with Deutsche Telekom for the UEFA Euro 2024

DOoH as the Fusion of Mass Audience, Targeting/Data, Content and Automation

Live broadcast of goals during the European Championship

• Content and advertising in an entertainment environment
• Ströer tech stack enables near real-time playout
• Highly frequented Public Video touchpoints scale and reach mass audience
• Granular targeting options (e.g. with DCO)
• Complexity managed by fully automated programmatic systems
• Exceptionally positive feedback by the audience
  

Current Momentum driven by Future-Proof Operational Levers Transformation of OoH is operating in normal macro Environment again

The most profitable product (=DOoH) is growing the fastest and will be $>50 \%$ around the end of 2026

2 The most profitable sales channel (=national business) is back on pre-COVID share with sustainable sales KPIs and overproportionate growth of programmatic sources

3 Upfront investment in digital infrastructure is completed and CAPEX as share of revenue will constantly decline while we continuously still improve the product

4 Our fill rate - parallel to robust price increases - is still at a comparatively low level

5 We have adjusted our Classic OoH business to the inflationary challenges of 2022/23, the tobacco ad ban as well as an overall still lower level than in pre-pandemic times

Agenda

Group Update

Financials

Outlook

Profit and Loss Statement Q2 2024

m€	Q2 2023	Q2 2024	A
Revenues	454.8	511.5	$+12 \%$
Organic growth	$+7.3 \%$	$+11.5 \%$	$+4.2 \%$ pts
EBITDA (adjusted)	130.0	154.9	$+19 \%$
Exceptional items	$-1.5$	$-3.5$	$>-100 \%$
EBITDA	128.6	151.4	$+18 \%$
Depreciation \& Amortization ${ }^{(1)}$	$-76.7$	$-79.7$	$-4 \%$
EBIT	51.9	71.7	$+38 \%$
Financial result ${ }^{(1)}$	$-14.7$	$-17.9$	$-22 \%$
EBT	37.2	53.7	$+44 \%$
Tax result ${ }^{(2)}$	$-10.3$	$-16.2$	$-58 \%$
Net Income	26.9	37.5	$+39 \%$
Adjustments ${ }^{(3)}$	4.3	4.8	$+12 \%$
Net Income (adjusted)	31.2	42.3	$+36 \%$

[^0]
[^0]: ${ }^{(1)}$ Thereof attributable to IFRS 16 in D\&A $52.8 \mathrm{~m} €$ (PY: $49.5 \mathrm{~m} €$ ) and in financial result $8.0 \mathrm{~m} €$ (PY: $7.2 \mathrm{~m} €$ )
${ }^{(2)}$ Tax rate according to IFRS is $30.2 \%$ (PY: $27.6 \%$ )
${ }^{(3)}$ Adjusted for exceptional items ( $+3.5 \mathrm{~m} €$ ) and additional other reconciling factors in D\&A (PPA related amortization and impairment losses, $+3.2 \mathrm{~m} €$ ), in financial result ( $-0.7 \mathrm{~m} €$ ) and in income taxes $(-1.3 \mathrm{~m} €$ )

Free Cash Flow Perspective Q2 \& 6M 2024

	Q2		6M
m€	2023	2024	2023	2024
EBITDA (adjusted)	130.0	154.9	227.2	263.3
- Exceptional items	-1.5	-3.5	-4.3	-8.2
EBITDA	128.6	151.4	222.9	255.1
- Interest	-17.9	-21.1	-28.6	-35.4
- Tax	-12.1	-11.6	-27.2	-24.6
-/+ WC	-18.0	3.0	-25.5	-16.0
-/+ Others	6.9	-3.1	-1.5	-16.6
Operating Cash Flow	87.5	118.6	140.1	162.6
Investments (before M\&A)	-31.5	-21.6	-62.8	-41.0
Free Cash Flow (before M\&A)	56.0	97.1	77.3	121.6
Lease liability repayments (IFRS 16) ${ }^{(2)}$	-57.1	-51.0	-92.9	-99.9
Free Cash Flow (adjusted)	-1.1	46.1	-15.6	21.7

Comment

• Free Cash Flow (adj.) positive and significantly improved in Q2 and 6M
• Q2 Cash out from interest with reduced increase compared to Q1
• Q2 improvement in WC mostly driven by seasonality
• Delta in Others for Q2/6M includes higher utilization of provisions and improved at-equity result
• Stable bank leverage ratio despite earlier dividend payment than last year (Q3), Excluding dividend: leverage at 2.0 x and thus improved compared to PY like-for-like

2.29	2.54	2.24	2.24	2.28
753.8	860.9	770.0	782.8	843.8	$\square$ Financial net debt
					Leverage ratio ${ }^{(1)}$
30 Jun	30 Sep	31 Dec	31 Mar	30 Jun
2023	2023	2023	2024	2024

[^0]
[^0]: ${ }^{1)}$ Net debt and adj. EBITDA of last 12 month adjusted for IFRS 16
${ }^{2)}$ Part of Cash Flow from financing activities; ${ }^{3)}$ Before M\&A and incl. IFRS 16 lease liability repayments

Segment Perspective - OoH Media

	Q2			6M
m€	2023	2024	A	2023	2024	A
Segment revenue, thereof	201.0	242.4	$+20.6 \%$	358.2	424.3	$+18.5 \%$
Classic OoH	118.9	144.5	$+21.5 \%$	213.2	250.8	$+17.7 \%$
Digital OoH	66.1	84.9	$+28.5 \%$	115.3	148.8	$+29.0 \%$
OoH Services	15.9	13.0	$-18.7 \%$	29.7	24.7	$-16.7 \%$
EBITDA (adjusted)	91.1	117.2	$+28.6 \%$	150.0	190.3	$+26.9 \%$
EBITDA margin (adjusted)	$45.4 \%$	$48.4 \%$	$+3.0 \%$ pts	$41.9 \%$	$44.9 \%$	$+3.0 \%$ pts

Comment

• OoH Media with accelerated organic growth of $22.0 \%$ in Q2 (6M: 19.9\%)
• Classic OoH with growth acceleration to more than $20 \%$ in Q2, supported by good momentum around UEFA EURO 2024
• Digital OoH with consistently strong performance in Q2 against higher comps
• OoH Services with stable organic sales
• EBITDA (adj.) with positive margin trajectory in Q2/6M,

EBITDA (adj.) before IFRS 16 effects with margin improvement of 5\%-points in Q2/6M

Segment Perspective - Digital \& Dialog Media

	Q2			6M
m€	2023	2024	A	2023	2024	A
Segment revenue, thereof	191.9	215.3	$+12.2 \%$	371.7	418.7	$+12.6 \%$
Digital	96.4	107.6	$+11.6 \%$	181.4	203.5	$+12.2 \%$
Dialog	95.5	107.7	$+12.8 \%$	190.4	215.2	$+13.1 \%$
EBITDA (adjusted)	30.9	37.4	$+20.8 \%$	63.9	68.6	$+7.4 \%$
EBITDA margin (adjusted)	$16.1 \%$	$17.4 \%$	$+1.2 \%$ pts	$17.2 \%$	$16.4 \%$	$-0.8 \%$ pts

Comment

• Digital with ongoing double-digit revenue growth especially due to continuing increase of programmatic sales
• Dialog also with double-digit revenue growth in Q2, supported by acquisition of additional call center locations in PY - Call Centers and Direct Marketing activities with improved mid-single digit organic revenue growth in Q2
• EBITDA (adj.) with increase in Q2, more than compensating for slight decline in Q1

Segment Perspective - DaaS \& E-Commerce

	Q2			6M
m€	2023	2024	A	2023	2024	A
Segment revenue, thereof	83.4	85.6	$+2.6 \%$	171.2	177.6	$+3.7 \%$
Data as a Service	37.0	39.7	$+7.3 \%$	75.5	79.8	$+5.7 \%$
E-Commerce	46.4	45.9	$-1.1 \%$	95.7	97.8	$+2.1 \%$
EBITDA (adjusted)	14.9	8.9	$-39.9 \%$	27.3	21.2	$-22.3 \%$
EBITDA margin (adjusted)	$17.8 \%$	$10.5 \%$	$-7.4 \%$ pts	$15.9 \%$	$11.9 \%$	$-4.0 \%$ pts

Comment

• Statista with accelerated revenue growth driven by platform business
• Asam with broadly stable revenues in Q2; solid growth in Retail and eCom channels compensate for decline in international wholesale distribution
• EBITDA (adj.) with decrease resulting from lower gross profit from wholesale distribution and higher marketing intensity at Asam EBITDA (adj.) clearly above 2022 levels

Agenda

Group Update

Financials

Outlook

Outlook

• For Q3 2024, we expect organic revenue development as follows:
• OoH around +10\% (Classic/Services low single digit, DOoH more than $+20 \%$, Digital and Dialog up mid-single digit)
• Statista back to double digit growth ( mid to high teens); Asam DACH up high single digit but in total down high single digit due to development in international wholesale
• Full-year guidance: OoH exceeding the initial expectation as published in our Full-year guidance by 40 Million Euro. On group level this will be offset by lower Asam sales in a non-core medical wholesale product in China.
• Organic revenue growth noticeably higher than 2023 (+7.5\%) and substantial operational leverage based on:
• EBITDA margin (adj.) around prior year level \& IFRS effects roughly stable
• Therefore EBIT (adj.) with double the growth rate of EBITDA (adj.)
• Free cash flow (adj.) significantly above growth rate of EBIT (adj.)
  

Financial Calendar 2024 / 2025

Q3 2024
Q4 2024

Q3 2025
Q2 2025
August 8 Publication of HalfYearly Financial Report

Q2 2025
Q3 2025 Yearly Financial Report

Disclaimer

This presentation contains "forward looking statements" regarding Ströer SE \& Co. KGaA ("Ströer") or the Ströer Group, including opinions, estimates and projections regarding Ströer's or the Ströer Group's financial position, business strategy, plans and objectives of management and future operations.

Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements.

These forward looking statements speak only as of the date of this presentation release and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by Ströer with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein.

The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.

1st HY 2024 Market Dynamics: (D)OoH outperforming the Ad Market German Ad Market with positive Momentum in the first six Months

Profit and Loss Statement H1 2024

$\mathbf{m} \in$	H1 2023	H1 2024	A
Revenues	864.7	965.0	$+12 \%$
Organic growth	$+7.3 \%$	$+10.3 \%$	$+3.0 \%$ pts
EBITDA (adjusted)	227.2	263.3	$+16 \%$
Exceptional items	$-4.3$	$-8.2$	$-91 \%$
EBITDA	222.9	255.1	$+14 \%$
Depreciation \& Amortization ${ }^{(1)}$	$-152.7$	$-156.6$	$-3 \%$
EBIT	70.2	98.5	$+40 \%$
Financial result ${ }^{(1)}$	$-28.4$	$-36.2$	$-28 \%$
EBT	41.9	62.3	$+49 \%$
Tax result ${ }^{(2)}$	$-11.5$	$-18.8$	$-63 \%$
Net Income	30.3	43.5	$+44 \%$
Adjustments ${ }^{(3)}$	9.7	11.2	$+16 \%$
Net Income (adjusted)	40.0	54.8	$+37 \%$

[^0]
[^0]: ${ }^{(1)}$ Thereof attributable to IFRS 16 in D\&A 104.3m€ (PY: 97.6m€) and in financial result $15.7 \mathrm{~m} €$ (PY: 14.1m€)
${ }^{(2)}$ Tax rate according to IFRS is $30.1 \%$ (PY: $27.6 \%$ )
${ }^{(3)}$ Adjusted for exceptional items ( $+8.2 \mathrm{~m} €$ ) and additional other reconciling factors in D\&A (PPA related amortization and impairment losses, $+6.4 \mathrm{~m} €$ ), in financial result ( $+0.3 \mathrm{~m} €$ ) and in income taxes $(-3.6 \mathrm{~m} €$ )