Ströer SE & Co. KGaA

Earnings Release • Jun 22, 2018

Warburg Highlights June 22, 2018 | Ströer SE & Co. KGaA

INDEX

01

Strategic Update

02

Business Segments

Q1 Results

03 04

Outlook

"The most customer-centric, multi-channel media company in/from Germany."

Out-of-Home & Content Media: A strong Base Platform

Net sales 2017, sources: Total market based on Schickler, OVK-Report 2017, Statista 4

Consumer Access for Advertisers has changed dramatically

Traditional value-chain business model Linear and one way

Consumer Access for Advertisers has changed dramatically

Advertiser

Direct Media

Trusted Partner to operate Direct Marketing in the digital Age

*Full 12 month annualized 9

Complementing integrated Brand-Performance-Sales Funnel

Data aggregation

Customer centric Strategy leads to increasing Relevance and strengthens Partnerships with major Brands

Constantly growing regional and local Salesforce

Constantly growing regional and local Salesforce
For 2018: Optimizing regional consultants & call center + strong growth of local & digital sales force
Sales team/FTEs	2016	2017	e2018	e2019	e2020
Regional consultants	89	118	110	120	130
Local sales	243	284	520	685	850
"Digital only" consultants	62	58	120	140	160
Ströer SME only call center agents	40	35	50	55	60
TOTAL	434	605	800	1,000	1,200

Out-of-Home Media – Summary

Location Based Advertising

Out-of-Home Media is digitally transforming

Digital OoH Portfolio Strategy

Public Video Network

(RSS, DCLB, DCLP)

POS / Digital Signage (Food & other channels)*

Roadside Screens – The Medium for each Client Cluster

Content Media – Summary Digital Content & Marketing Services

Strong Market Position: Audience Coverage versus Competition

Balanced, thus robust Product and Inventory Portfolio

Strategic Portfolio Management of Ströer Content Group Assets

T-Online Brand Reach: 80% of the digital Population in Germany

Direct Media – Summary D2D, Phone, Chat, Mail, CpO

1 Quickly reached significant relevant size and excellent position for further consolidation with Ströer Direct Media being No.2 in revenue in the market segment

2 Huge potential for integrated solutions with clients already being leveraged

3 Synergetic potential in the combined usage of resources between all our operation Direct Media centers already being leveraged

4 By using bespoke technology future synergies will be exploited

5 Currently looking to further consolidate industry segments

Direct Marketing Ranking

	Direct Marketing Ranking
			incl. international
Rank	2017 Company	Locations	business Net Gross Income		2017 (as 2018): 2nd	place
1	Arvato CRM Solutions	28	1,309,430,00
2	Capita Europe	17	259,307,838
3	Bosch Service Solutions	13	247,700,000
4	Teleperformance Germany	19	175,000,000
5	Convergys/buw-Gruppe	19	165,590,014
6	regiocom GmbH	12	152,531,537
7	Ranger Marketing & Vertrieb*	150	90,973,167
8	D+S communication center	13	85,602,949
9	Swiss Post Solutions GmbH	7	78,578,000
10	Sykes Enterprises GmbH	10	72,000,000
11	walter services GmbH	7	60,542,757
12	Invitel Unternehmensgruppe	11	49,397,382
13	Avedo GmbH	6	47,252,517
14	KiKxxl GmbH	4	46,137,878
15	Arteria S.A.	9	42,595,000
	DV-COM GmbH	7	42,321,367

Rank	Company	Locations	Net Gross Income
1	Arvato CRM Solutions	28	~380,000,000
2	Ströer Group**	176	266,150,000
3	Capita Europe	17	259,307,838
4	Bosch Service Solutions	13	247,700,000
5	Teleperformance Germany	19	175,000,000
6	Convergys/buw-Gruppe	19	165,590,014
7	regiocom GmbH	12	152,531,537
8	Swiss Post Solutions GmbH	7	78,578,000
9	Sykes Enterprises GmbH	10	72,000,000
10	walter services GmbH	7	60,542,757
11	Invitel Unternehmensgruppe	11	49,397,382
12	KiKxxl GmbH	4	46,137,878
13	Arteria S.A.	9	42,595,000
14	gkk DialogGroup GmbH	4	37,844,422
15	BFS Baur Fulfillment	3	30,000,000
16	getaline GmbH	5	24,371,110

29

Catalyzing to convert great Customer Experience into Growth

Successful Implementation of integrated Campaigns

Case: Telecommunication

INDEX

01

Strategic Update

02

Business Segments

03

Q1 Results

04

Outlook

Results Q1 2018

Results Q1 2018 m€ Q1 2018 Q1 2017 ▲ (pro forma)(1) Reported 336.6 281.2 +20% Revenues Organic(2) 6.8% 8.8% -2.0%pts Operational EBITDA 109.8 94.7 +16% Operational EBITDA margin 32.6% 33.7% -1.1%pts EBIT (adjusted)(3) 43.7 33.1 +32% (adjusted)(3) Net income 29.2 20.5 +42% Operating cash flow 77.7 59.0 +32% Capex 34.2 31.0 +10% 31 Mar 2018 31 Dec 2017 Net Debt(4) / Leverage
		Ratio(5)	533.6 / 1.6x	463.3 / 1.4x
(2) Excluding exchange rate effects and effects from (de)consolidation and discontinuation of operations (3) 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 (applying a normalized tax rate of 15.8%)	(4) (5)	Financial liabilities less cash, excl. IFRS 16 lease obligations and elimination of prior IFRS 11 adjustment Net debt divided by Op. EBITDA of last 12 month (adjusted for IFRS 16)			32

INDEX

01

Strategic Update

02

Business Segments

Q1 Results

03 04

33

Outlook

Our Targets for 2018: Unchanged KPIs & Sustainable Performance

*before M&A

Outlook for Q2: Next Quarterly Results on August 9

• 1. Similar to development of the last fifteen months: solid business across the entire group with expected growth for 2018 in line with annual guidance
• 1. Robust development of OoH Media business primarily fueled by regional sales and extended local sales
• 1. Content Media segment consistently on track regarding top line growth, market share development as well as consolidation and integration processes
• 1. Direct Media on track and in line with expectations significant group synergies, cost cutting opportunities post merger

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.