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Ströer SE & Co. KGaA

Investor Presentation • Feb 26, 2018

417_ip_2018-02-26_77c82c06-307c-4d71-9ac3-d8ff874dcf2e.pdf

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Ströer SE & Co. KGaAPreliminaryFigures FY 2017

Roadshow Hauck & Aufhäuser, London

February 26, 2018 | Ströer SE & Co. KGaA

INDEX

Preliminary Results FY 2017

E
U
R
m		 F
Y
2
0
1
7		 ▲ Q
4
2
0
1
7		 ▲
(
1
)
R
d
t
e
p
o
r
e		 1,
3
3
1.
0		 1
8
%
+		 4
2
1.
5		 1
8
%
+
R
e
v
e
n
u
e
s		 (
2
)
O
i
r
g
a
n
c		 8
7
%
+		 9
0
%
+
O
i
l
t
p
e
r
a
o
n
a		 E
B
I
T
D
A		 3
3
1.
2		 1
7
%
+		 1
2
2
2		 1
6
%
+
O
i
l
E
B
I
T
D
A
i
t
p
e
r
a
o
n
a
m
a
r
g
n		 2
4
6
%		 0
3
%
t
p
s
-		 2
8
7
%		 0
5
%
t
p
s
-
(
3
)
E
B
I
T
(
d
j
d
)
t
a
u
s
e		 2
2
6
2		 1
8
%
+		 9
3
1		 1
8
%
+
(
4
)
N
i
(
d
j
d
)
t
t
e
n
c
o
m
e
a
s
e
u		 1
8
3
6		 1
9
%
+		 7
6
5		 1
9
%
+
O
i
h
f
l
t
p
e
r
a
n
g
c
a
s
o
w		 2
5
2
4		 7
%
+		 1
2
4
9		 1
1
%
+
(
5
)
C
a
p
e
x		 1
0
6
2		 9
%
+		 1
9
0		 2
7
%
-
3
1
D
e		 2
0
1
7
c		 3
1
D
e		 2
0
1
6
c
(
)
6
N
D
b
/
L
R
i
t
t
t
e
e
e
v
e
r
a
g
e
a
o		 4
5
7
1		 /
1.
4
x		 3
3
0
3		 /
1.
2
x

(1) According to IFRS 11

(2) Organic growth = excluding exchange rate effects and effects from the (de)consolidation and discontinuation of operations

(3) EBIT adjusted for exceptional items, amortization of acquired advertising concessions and impairment losses on intangible assets (Joint ventures are consolidated proportional)

(4) EBIT (adj.) net of the financial result adjusted for exceptional items and the normalized tax expense (15.8% tax rate in 2016 and 2017)(5) Cash paid for investments in PPE and intangible assets and cash received for disposals of PPE and intangible assets

(6) Net debt = financial liabilities less cash (excl. hedge liabilities)

Our Targets 2017: Fully Delivered in a Challenging Market Context

Complementing Integrated Brand-Performance-Sales Funnel

Data aggregation

Customer Centricity Evolves Partnerships with Key Accounts

Out-of-Home Media Content MediaDialog Media

Exemplary Key Accounts

Robust & Sustainable Growth Drivers in all Key Segments

O
f-
H
M
d
i
t-
u
o
o
m
e
e
a
(
L
i
B
d
A
d
i
i
)
t
t
o
c
a
o
n
a
s
e
e
r
s
n
g
v
L
i
B
d
R
h
C
t
o
c
a
o
n
a
s
e
e
a
c
o		 C
M
d
i
t
t
o
n
e
n
e
a
(
D
i
i
l
C
M
k
i
S
i
)
&
t
t
t
t
g
a
o
n
e
n
a
r
e
n
g
e
r
c
e
s
v
B
d
R
h
&
t
t
n
e
n
a
s
e
e
a
c		 D
i
l
M
d
i
a
o
g
e
a
(
D
D
P
h
C
h
M
i
l,
C
O
)
2
t,
o
n
e,
a
a
p
,
(
O
f-
H
)
I
t-
u
o
o
m
e
K
l
i
e
o
g
c
s
y
:		 i
(
O
l
i
)
t
t
n
e
r
a
c
o
n
n
n
e
S
1.
l
i
h
l
i
d
b
t
t
g
g
r
o
n
g
a
n
r
o
s
y
w
u
f
l
i
k
h
i
h
t
t
t
p
o
r
o
o
m
a
r
e
s
a
r
e
w
i
d
i
h
h
t
g
r
o
w
n
g
a
u
e
n
c
e
r
o
u
g
b
i
i
d
b
i
l
i
t
t
u
r
a
n
z
a
o
n
a
n
m
o
y
f
i
f
2
5
4
%
*
o
r
e
v
e
n
u
e
s
c
o
m
n
r
o
m		 1.
M
h
i
l
k
t
t
e
a
n
e
s
r
o
n
g
m
a
r
e
w
G
i
i
t
t
p
o
s
o
n
a
m
o
n
g
s
e
r
m
a
n
l
d
l
i
d
i
t
p
a
y
e
r
s
a
n
c
o
n
s
o
a
o
n
i
i
b
d
3
0
%
t
t
o
p
p
o
r
u
n
e
s
e
y
o
n
**
k
h
t
m
a
r
e
s
a
r
e		 G
1.
i
l
i
'
d
d
t
t
r
o
n
g
c
e
n
s
e
m
a
n
o
w
&
d
i
d
i
t
m
a
n
a
g
e
r
e
r
e
c
c
o
n
s
m
e
r
v
u
G
h
A
F
A
i
t
t
c
o
n
a
c
s
w
e
n
s
m
o
r
e
d
l
l
i
t
a
n
m
o
r
e
c
o
n
r
o
n
g
a
c
c
e
s
s
h
l
c
a
n
n
e
s
g
l
l
d
i
l
b
i
(
o
c
a
a
n
r
e
g
o
n
a
s
n
e
s
s
s.
u
v
4
6
%
i
l
d
k
)
t
t
n
a
o
n
a
a
m
a
r
e
3
D
i
i
i
i
i
d
i
i
b
h
t
t
t
g
z
a
o
n
s
r
v
n
g
o		 f
i
f
2
5
1
%
***
o
r
e
e
n
e
s
c
o
m
n
g
r
o
m
v
u
d
i
l
i
l
i
h
i
d
t
t
t
r
e
c
c
e
n
r
e
a
o
n
s
p
s
a
n
d
i
i
t
t
r
e
c
p
r
o
g
r
a
m
m
a
c
s
o
r
c
e
s
u		 M
k
f
i
d
l
k
f
2
t
t
t
a
r
e
r
a
g
m
e
n
a
o
n
a
n
a
c
o
f
i
l
i
i
&
l
i
t
p
r
o
e
s
s
o
n
a
a
o
n
s
c
a
e
s
z
f
f
i
i
i
i
t
t
t
t
o
e
r
n
g
s
r
a
e
g
c
o
p
p
o
r
n
e
s
u
i
l
i
i
t
t
t
n
v
e
n
o
r
y
v
a
u
e
m
o
n
e
z
a
o
n
,
i
l
d
i
l
d
i
i
i
t
t
t
t
p
o
e
n
a
a
n
y
e
o
p
m
z
a
o
n		 S
h
i
h
l
f
i
b
l
3
&
t
t
r
o
n
g
g
y
p
r
o
a
e
o
w
n
i
b
i
i
i
h
t
t
t
a
s
s
e
s
n
c
o
m
n
a
o
n
w
f
h
G
3
4
5
7
0
0
t
t
**

o
e
o
p
e
r
m
a
n
b
i
t
e
s
e
s
w		 M
i
d
i
i
i
i
i
i
3
t
t
t
t
a
s
s
v
e
g
s
a
o
n
o
p
p
o
r
u
n
e
s
i
b
i
i
i
h
t
t
n
c
o
m
n
a
o
n
w
g
r
o
u
p
i
l
h
l
&
3
6
0
°
s
n
e
r
g
e
s
s
a
e
s
c
a
n
n
e
s
y

2017 Key Strategic Investment Initiatives

Digitalization of Location Based Advertising

  • -The 500th Infoscreen display
  • -The 200th Roadside screen
  • -The 4,000th Public Video screen

Hedging unique position in DigitalOut-of-Home

  • -Acquisition of Neo and
  • -United Ambient Media

Development of strong local sales force

  • -The 500th local sales agent
  • -Doubling regional online sales revenues

Completing the marketing value chain

  • -Ströer Dialog – Acquisition of Avedo and
  • -Ranger

Data Partnership with Otto

  • -More than 25m strong data profiles
    • Successful launch of new data and targeting products

Maximizing and monetizing value ofe-commerce Business

-Vitalsana

Leveraging reach in Content Based Online Inventory

  • -Sales Partnership with gofeminin
  • and Bauer Verlag

Relaunching and uplifting t-Online

    • Multi touchpoint reach of 47 millionunique users
  • -New content hub in Berlin

Clear Strategic Focus: Investing in Our Core Capabilities

Ad Market: Growth Driver Segments Content and Out-of-Home

Source: Nielsen Media Research, gross advertising * Online & Mobile; ** Mobile (MOB): as of 2011; *** OOH incl. Billboard, Transport Media, At-Retail-Media, Ambient Media 12

Q4 Highlights

Out-of-Home Media (Location Based Advertising)

Radeberger

Event area at Berlin main station with Public Video-Screen, retro-fridge & free beer

The branded refrigerator unexpectedly addresses people passing the PV screen and, depending on the situation, asks them to answer funny questions or do extraordinary work for a beer.

Facebook

"Make Facebook your Facebook" entered the second round

On more than 1,800 city-light posters on the street, onthe subway and train platforms and in shopping malls, users and non-users shared their thoughts with Facebook and questioned critical points.

SEGMÜLLER

With a strong focus on public transport media to the TOP customer in regional salesIn addition to 50 fully wrapped trams, Mega-Lights, premium city-light posters and the digital roadside screens in Cologne were used for the large opening campaign of the furniture store.

Content Media (Digital Content & Marketing Services)

Volkswagen

Three day homepage Roadblock

Objective: Highest reach through fixed placements.

Idea: Reach 83% of internet users through the Ströerdigital product with the highest reach in three days.

Result: Highest attention within shortest time.

Jack Wolfskin Statista

Targeting based on Otto Group data

Addressing different sub-target groups with matching motifs, separated by gender. 10-week playout of a dynamic sitebar & mobile poster ad in the Ströer network, combining with Otto Group media interest targeting and behavioral targeting. Result: Uplifts of the target group match of up to 102% compared to AGOF distribution and above-average CTRs.

Statista – The Growth Story

Country reports for 50 countries implemented, launch ofthe database eCommerceDB.com for the focus markete-commerce, company database with most important facts and figures on >5,000 companies, website relaunch that significantly improved reach effects (including SEO),expansion of sales to Asia & South America.

Dialog Media (D2D, Phone, Chat, Mail, CpO)

Deutsche Telekom

Start in fiberglass pre-marketing

Germany's telecommunications incumbent Deutsche Telekom massively starts investing in fiberglass fixnetconnections to homes and businesses. First pilot projects were accompanied by local direct sales teams to achieve ambitious sales targets for a lucrative "build" decision.

Acquiring out of area customers and testing new product offerings

One of Europe's leading energy companies focusing on renewables, grid-operations and customer solutions relies on Ranger to achieve it's ambitious customer goals. Additionally Ranger provides market tested insights for numerous new product offerings.

E.ON Vodafone Kabel Deutschland

Generating B2B customers with cable based multi-user contracts

Ranger joined Kabel Deutschland as a partner for sellingmulti-user contracts to medium-sized enterprises. The primary objective is to generate new business and to service existing customers, large housing associations and property developers.

Vitalsana – Successful Exit and Smart Yield Management of Inventory

Customer Growth ThrougheCommerce in the OTC Area

Buy..Grow. Sell.

Acquisition in October 2016 – only mail-order pharmacy with relevant sales in Germany, which can be purchased directly. By using Ströermedia (OoH, Public Video and Digital) the e-commerce business was significantly expanded and the customer base significantly increased. In November 2017, the company was successfully sold to DocMorris (Zur Rose Group) at an attractive price.

Outlook 2018: Ströer Dialog -A Strong Player in Direct Marketing

* Full 12M annualized

Synergies Across Business Segments Rapidly Improving

1
C
l
i
t
o
m
p
e
m
e
n
n
g
k
i
f
f
i
t
t
m
a
r
e
n
g
o
e
r
n
g
o
l
i
b
d
i
l
t
c
e
n
s
a
o
g
y
M
k
i
P
l
f
t
t
a
r
e
n
g
a
o
r
m		 S
i
i
f
d
b
k
f
k
l
i
d
i
i
d
d
i
Q
4
2
0
1
7
t
t
t
r
o
n
g
p
o
s
v
e
e
e
a
c
r
o
m
e
y
c
e
n
s
a
n
n
c
r
e
a
s
n
g
e
m
a
n
n
2
L
i
d
i
l
e
v
e
r
a
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n
g
a
o
g
M
k
i
P
l
f
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n
g
a
o
r
m
o
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S
M
B
b
i
o
w
n
u
s
n
e
s
s		 T
h
A
d
l
l
R
i
h
l
d
i
R
l
l
O
f-
H
f
f
t
t
t-
r
e
e
e
s
s
:
v
e
o
s
e
s
e
g
o
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e
n
s
e
r
v
c
e
s,
a
n
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r
s
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A
d
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B
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3
M
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l
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f
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p
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:
4
G
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p
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y
n
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o
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p
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a
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f
f
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K
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R
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Strong Internal Synergies: Example Recruitment Funnel

INDEX

Profit and Loss Statement Q4 2017*

E
U
R
m		 Q
4
2
0
1
7		 Q
4
2
0
1
6		 ▲
%		 A
l
i
n
a
y
s
s
(
1)
Re
(
d
)
t
ve
nu
e
s
re
p
o
r
e		 4
2
1.
5		 3
5
7.
6		 1
8
%
+		 Ex
ion
dr
ive
by
9.
0
%
ic
h
d
M
&
A
t
p
an
s
n
o
rg
an
g
ro
w
an
A
d
j
(
I
F
R
S
)
1
1
tm
ts
us
en		 4.
3
+		 2.
1
+		 1
0
0
%
>+
Re
(
M
V
iew
)
t
ve
nu
e
s
a
na
g
e
m
e
n		 4
2
5.
8		 3
5
9.
7		 1
8
%
+
O
io
l
E
B
I
T
D
A
t
p
e
ra
na		 1
2
2.
2		 1
0
5.
0		 1
6
%
+		 Pe
fo
be
ha
i
de
d
(
by
d
5
%
)
t
te
t
r
rm
an
ce
r
n
g
u
a
ro
un
Ex
ion
l
i
t
te
ce
p
a
m
s		 0.
4
+		 -1
0.
4		 /a
n		 Po
i
ive
d
ive
ion
l
i
ba
lan
ing
t
t
t
te
s
a
n
ne
g
a
e
xc
ep
a
m
s a
re
c
I
F
R
S
1
1 a
d
j
tm
t
us
en		 -1
5		 -1
4		 -1
3
%
E
B
I
T
D
A		 1
2
1.
1		 9
3.
2		 3
0
%
+
De
ia
ion
Am
iza
ion
&
t
t
t
p
re
c
or		 -6
0.
2		 -5
6.
0		 -8
%		 Inc
in
D
&
A
du
lar
l
i
da
ion
to
t
re
as
e
e
g
er
c
on
so
l
l a
Im
irm
in
Tu
ke
t
sc
op
e
as
e
s
p
a
en
r
w
y
E
B
I
T		 6
0.
9		 3
7.
2		 6
4
%
+
F
ina
ia
l re
l
t
nc
su		 -2
8		 -2
5		 -1
3
%
Ta
l
t
re
su
x		 -1
0.
5		 -5
5		 -9
3
%
Ne
In
t
c
o
m
e		 4
7.
5		 2
9.
2		 6
3
%
+
(
2)
A
d
j
tm
t
us
en		 2
9.
0
+		 3
5.
3
+		 -1
8
%
Ne
in
(
d
j
d
)
t
t
c
o
m
e
a
u
s
e		 7
6.
5		 6
4.
5		 1
9
%
+		 Pe
fo
be
ha
i
de
d
(
by
5
1
0
%
)
t
te
t
to
r
rm
an
ce
r
n
g
u

Preliminary and unaudited

(1) According to IFRS

(2) Adjustment for exceptional items (+0.2 m€) including adjustments of financial result, amortization of acquired advertising concessions & impairment losses on intangible assets (+32.3 m€), tax adjustment (-3.5 m€)22

Profit and Loss Statement FY 2017*

E
U
R
m		 F
Y
2
0
1
7		 F
Y
2
0
6
1		 ▲
%		 A
l
i
n
a
s
s
y
(
1)
Re
(
d
)
t
ve
nu
e
s
re
p
o
r
e		 1,
3
3
1.
0		 1,
1
2
3.
3		 1
8
%
+		 Ex
ion
dr
ive
by
ic
h
d
M
A
8.
7
%
&
t
p
an
s
n
o
rg
an
g
ro
an
w
A
d
j
(
I
F
R
S
1
1
)
tm
ts
us
en		 1
4.
0
+		 1
1.
9
+		 1
8
%
+
Re
(
M
V
iew
)
t
ve
nu
e
s
a
na
g
e
m
e
n		 1,
3
4
5.
1		 1,
1
3
5.
1		 1
8
%
+
O
io
l
E
B
I
T
D
A
t
p
e
ra
na		 3
3
1.
2		 2
8
2.
8		 1
7
%
+		 O
fo
f g
i
da
tp
er
rm
an
ce
o
nc
e
u
u
Ex
ion
l
i
t
te
ce
p
a
m
s		 -1
5.
9		 -2
6.
8		 4
1
%
+		 S
ig
i
f
ica
ly
be
low
P
Y
t
n
n
S
I
F
R
1
1 a
d
j
tm
t
us
en		 -5
1		 -4
4		 -1
6
%
E
B
I
T
D
A		 3
1
0.
2		 2
5
1.
6		 2
3
%
+
De
ia
ion
&
Am
iza
ion
t
t
t
p
re
c
or		 -1
8
3.
5		 -1
6
6.
2		 -1
0
%		 La
l
i
da
ion
d
P
P
A
de
ia
ion
t
t
rg
er
c
on
so
sc
op
e
an
p
re
c
s
E
B
I
T		 1
2
6.
7		 8
5.
3		 4
8
%
+
F
ina
ia
l re
l
t
nc
su		 -8
9		 -1
0.
0		 1
1
%
+		 Lo
f
ina
ia
l re
l
ba
d
be
f
ina
ing
t
t
te
we
r
nc
su
se
on
r
nc
d
i
ion
t
co
n
s
Ta
l
t
x
re
su		 -1
8.
8		 -9
9		 -9
0
%
Ne
In
t
c
o
m
e		 9
9.
0		 6
5.
5		 5
1
%
+
(
2)
A
d
j
tm
t
us
en		 8
4.
7
+		 8
8.
3
+		 -4
%
Ne
in
(
d
j
d
)
t
t
c
o
m
e
a
u
s
e		 1
8
3.
6		 1
5
3.
8		 1
9
%
+		 O
fo
f g
i
da
tp
u
er
rm
an
ce
o
u
nc
e

Preliminary and unaudited

(1) According to IFRS

(2) Adjustment for exceptional items (+16.8 m€) including adjustments of financial result, amortization of acquired advertising concessions & impairment losses on intangible assets (+80.5 m€), tax adjustment (-12.7 m€)23

Transition of Net Income to Net Income Adjusted

    • Net income adjusted is central parameter of our dividend policy
    • D&A of M&A related revaluations (PPA effect) on the same level as in 2016
    • Impairments mainly linked to OOH Turkey
    • Higher tax base of EBT adjusted leads to tax adjustment

2017: Break down of Exceptional Items

Details on Exceptional Items

Analysis

    • Exceptional items 2017 are reduced by 41% versus 2016
    • Approximately 19 m€exceptional expenses for integration and restructuring activities; thereof 5 m€ related to T-Online migration and restructuring
    • M&A expenses of around 8 m€comprise expansion into Dialog Media
    • Divestment activities (Vitalsanaand Stylefruits) lead to an exceptional income of 11 m€

Overview on Growth Rates FY 2017

G
r
o
p
u		 D
i
i
l
t
g
a		 O
G
H
o
e
r
m
a
n
y		 O
H
I
i
l
t
t
o
n
e
r
n
a
o
n
a
G
Y
T
D
R
d
h
t
t
e
p
o
r
e
r
o
w		 1
8
5
%
+		 3
7
9
%
+		 7
5
%
+		 1
5
8
%
-
Y
T
D
O
i
G
h
t
r
g
a
n
c
r
o
w

i
l
d
i
i
n
c
u
n
g
o
r
g
a
n
c
h
f
M
M
A
1
2
&
t
g
r
o
w
o		 8
7
%
+		 1
1.
6
%
+		 6
4
%
+		 2
5
%
+
Y
T
D
O
i
G
h
t
r
g
a
n
c
r
o
w

/
o
r
e
e
n
e
s
w
v
u
f
M
M
A
1
2
&
o		 8
0
%
+		 1
0
6
%
+		 6
0
%
+		 5
2
%
+

Digital: Continuously Strong Profitable Growth in Q4 2017

  • Strong digital growth, both organically as well as scope effects (especially new sub-segment Dialog Marketing)
  • Increase in revenues and operational EBITDA in Q4 2017 was driven by all product groups
  • Ongoing integration efforts around the segment (e.g. unifying digital sales houses and combining office spaces)

Digital Product Group Development FY 2017 (w/o dialog media)

Note: In 2017reclassification of revenues to product groups; 2016 restated

OoH Germany: Sustainable Growth Performance in Q4 2017

  • Outperformance of strong prior year revenue increase driven by both local/regional and national sales forces
  • Growth supported by expansion of digital product portfolio and by acquisitions (e.g. UAM Media Group)
  • Operational EBITDA margin in Q4 in line with previous year

OoHInternational: Reported Relevance is Diminishing for Group

OOH International is still suffering from soft Turkish economy and ad market as well as negative fx effects; disposal of non-profitable Istanbul contract in H2/2017

Strong organic growth in Q4 driven by blowUP business, which is also strongest EBITDA contributor in Q4 and FY

Relevance of Turkey further diminishing (only 1.3% of Group operational EBITDA 2017). Non-cash relevant one-time impairment of 10 m€ to adjust Turkish book value; remaining goodwill is negligible

New Segment Structure as of 1 January 2018

    • Existing segmentation does not sufficiently reflect management steering
    • Segment OoH International will be merged into OoH Germany segment due to lack of relevance and size
    • Digital segment demerges Dialog Media (including Transactional businesses) due to business heterogeneity and size

* includes holding, consolidation and IFRS 11 adjustments

Free Cash Flow Perspective Q4 2017*

E
U
R
m		 Q
2
0
4
1
7		 Q
2
0
6
4
1
O
E
B
I
T
D
A
p.		 2
2.
2
1		 0
0
1
5.
Ex
ion
l
i
t
te
ce
p
a
m
s
-		 0.
4
+		 -1
0.
4
I
F
R
S
1
1 a
d
j
tm
t
us
en
-		 -1
5		 -1
4
E
B
I
T
D
A		 1
2
1.
1		 9
3.
2
In
te
t
re
s
-		 -1
9		 -2
4
Ta
x
-		 -1
7		 -3
0
C
-/+
W		 2
3.
6
+		 2
0.
1
+
O
he
t
rs
-		 -1
6.
1		 4.
3
+
O
C
in
h
F
lo
t
p
e
ra
g
a
s
w		 1
2
4.
9		 1
1
2.
2
In
(
b
fo
M
&
A
)
t
t
ve
s
m
e
n
s
e
re		 -1
9.
0		 -2
6.
1
Fr
C
h
F
lo
(
b
fo
M
A
)
&
e
e
a
s
e
re
w		 1
0
5.
9		 8
6.
1

Preliminary and unaudited

Analysis

    • Around 70% of Free Cash Flow in 2017 was generated in Q4
    • Strong operational cash generation in line with increased operational performance
    • Like in Previous Year strong Working Capital contribution to Operating Cash Flow
    • "Others": Negative value mainly due to sale of Vitalsana (cash recognition in M&A cash flow)

Free Cash Flow Perspective FY 2017*

E
U
R
m		 F
Y
2
0
1
7		 F
Y
2
0
6
1
O
E
B
I
T
D
A
p.		 3
3
2
1.		 2
8
2.
8
Ex
ion
l
i
t
te
ce
p
a
m
s
-		 -1
5.
9		 -2
6.
8
I
F
R
S
1
1 a
d
j
tm
t
us
en
-		 -5
1		 -4
4
E
B
I
T
D
A		 3
0.
2
1		 2
6
5
1.
In
te
t
re
s
-		 -6
0		 -7
2
Ta
x
-		 -2
3.
1		 -1
1.
2
C
-/+
W		 2.
5
+		 1
2.
2
+
O
he
t
rs
-		 -3
1.
1		 -9
0
O
in
C
h
F
lo
t
p
e
ra
g
a
s
w		 2
5
2.
4		 2
3
6.
3
In
(
b
fo
M
&
A
)
t
t
ve
s
m
e
n
s
e
re		 -1
0
6.
2		 -9
7.
8
Fr
C
h
F
lo
(
b
fo
M
&
A
)
e
e
a
s
e
re
w		 6.
2
1
4		 3
8.
1
5

Preliminary and unaudited

Analysis

  • Low interest payments based on better financing conditions - Different from PY and 2015 negligible contributions from change of Working Capital- Sustainable high investments in digitalization, software and other intangibles- "Others": Effect mainly from Q4 (Sale of Vitalsana)

Guidance Achievement Year by Year

2
0
1
3		 2
0
1
4		 2
0
1
5		 2
0
1
6		 2
0
1
7
E
U
R
m		 Gu
i
d
a
nc
e		 Ac
l
tu
a		 Gu
i
d
a
nc
e		 Ac
l
tu
a		 Gu
i
d
Ac
l
tu
a
nc
e
a		 Gu
i
d
a
nc
e		 Ac
l
tu
a		 Gu
i
d
a
nc
e		 Ac
l
tu
a
O
ic
rg
a
n
h
t
g
ro
w		 Lo
w
ing
le
d
ig
i
t
s		 3.
5
%
1
0
%
>		 1
1.
4
%		 H
ig
h
ing
le
d
ig
i
t
s		 9.
8
%		 M
i
d
to
h
ig
h
ing
le
s
d
ig
i
t		 7.
2
%		 M
i
d
to
h
ig
h
ing
le
s
d
ig
i
t		 8.
7
%
O
io
l
t
p
e
ra
na
E
B
I
T
D
A		 Mo
de
te
ra
inc
re
as
e		 1
1
8
(
1
0
%
)
+
~1
4
5		 1
4
8		 2
0
0
>		 2
0
8		 2
8
0
>		 2
8
3		 3
2
0-
3
3
0		 3
3
1
Ne
In
t
c
o
m
e
A
d
j.		 Mo
de
te
ra
inc
re
as
e		 3
6
(
5
1
%
)
+
5
0
>		 5
6		 ~1
0
0		 1
0
7		 1
5
0
>		 1
5
4		 1
7
5
>		 1
8
4
Fr
e
e
C
h
f
lo
*
a
s
w		 Mo
de
te
ra
inc
re
as
e		 3
9
S
l
ig
h
t inc
re
as
e		 8
0
(+
10
3%
)		 ~1
0
0		 6
1
1		 ~1
3
5		 3
9
1		 ~1
4
5		 6
1
4
Re
tu
rn
o
n
C
i
l
t
a
p
a
Em
lo
d
p
y
e
(
R
O
C
E
)		 Mo
de
te
ra
inc
re
as
e		 0.
3
1
%
1
0
%
>		 3.
8
1
%		 Co
i
de
b
le
ns
ra
inc
rea
se		 1
5.
4
%
(
% p.
1.
6
+
)
p.		 b
le
ta
s		 6.
9
1
%		 b
le
ta
s		 6
1
7.
%

Source: Company filings, broker research | * Free Cash Flow before M&A

Ströer to Apply IFRS 16 from 2018 Onwards

IFRS 16 framework

  • -Replaces the previous standard IAS 17 – Leases
  • -Can come effective earliest 1st January 2018

Application at Ströer

    • Advertising contracts with private and public lessors need to be classified as "leases" in the future
    • Capitalisation of the "right of use" by recognizing present valueof the future lease payments as intangible assets
    • Recognition of the obligation to make future lease paymentsas financial liabilities

Comments

  • Ströer applying IFRS 16 as early adopter (standard practice for German Media)
  • Effects higher than originally anticipated (since also publiccontracts are affected as wellas new contracts)
  • Ströer using IFRS 16 application to eliminate previous IFRS 11 adjustments as well

IFRS 16: Expected Implications for Ströer Group

Expected major impacts on Ströer KPIs

E
U
Rm		 F
Y
2
0
1
7		 Ex
d
Im
t
t
p
e
c
e
p
a
c
Re
ve
nu
es		 1,
3
4
5.
1		 No
ha
c
ng
es
Op
ion
l
E
B
I
T
D
A
t
er
a
a		 3
3
1.
2		 Inc
by
1
6
5
€
re
as
e
a
p
p
ro
m
x.
+
(
l
im
ina
ion
f o
ing
lea
)
t
t
e
o
p
er
a
se
e
xp
en
se
s
D
A
(
ba
)
&
se		 -1
0
3.
0		 Inc
by
-1
5
0
1
5
5
€
to
re
as
e
a
p
p
ro
x.
m
-
E
B
I
T
(
d
j
d
)
te
a
us		 2
2
6.
2		 Inc
by
1
0
1
5
€
to
re
as
e
a
p
p
ro
x.
m
+
(
ing
lea
t
as
o
p
er
a
se
e
xp
en
se
s a
re
lac
d
by
de
ia
ion
d
in
)
t
te
t
re
p
e
p
re
c
a
n
re
s
F
ina
ia
l re
l
t
nc
su		 -9
0		 Inc
by
-2
5
3
0
€
to
re
as
e
a
p
p
ro
x.
m
-
Ne
Inc
(
d
j
d
)
t
te
om
e
a
us		 1
8
3.
6		 De
by
-1
5
€
cr
ea
se
a
p
p
ro
x.
m
(
im
ing
f
fe
du
h
ig
he
in
du
ing
t
t
to
te
t
e
c
e
r
re
s
r
f
irs
l o
im
)
t y
tra
t
ea
rs
ne
ve
r
e
u
,
Fr
Ca
h
F
low
(
be
fo
M
&
A
)
ee
s
re		 1
4
6.
2		 Inc
by
1
4
0
€
re
as
e
a
p
p
ro
x.
m
+
(
las
i
f
ica
ion
f
lea
l
ia
b
i
l
i
t
ty
re
c
s
o
se
in
F
ina
ing
Ca
h
F
low
)
ts
re
p
ay
m
en
nc
s
Ne
De
b
t
t		 4
5
7.
1		 Inc
by
1.
1
bn
€
re
as
e
a
p
p
ro
x.
+
(
i
l
ize
d
ing
lea
ta
t
ca
p
op
er
a
se
/
l
ia
b
i
l
i
ies
)
ts
t
as
se

Comments

    • Scope at Ströer Group: >16,000 leasing contracts
    • Main P&L effects: increase in EBITDA and EBIT, long-term neutral to Net Income
  • Strongest effects in OoH segments

-

Source: Ströer estimations based on existing lease portfolio

Ströer Group's Key Performance Indicators – Guidance 2018

Outlook for 2018: Q1 Results 2018 on May 15

  • 1. Similar to development of the last twelve months: solid & robust businessacross the entire group with expected growth for 2018 in line with annual guidance
  • 2. Robust development of OoH Media business fueled by both national salesand extended local salesforce activities
  • 3. Content Media segment consistently on track regarding top line growth,market share development as well as consolidation and integration processes
  • 4. Dialog Media with promising start beyond expectations,significant group synergies and all processes fully on track

Financial Calendar 2018

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, expressed 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 newinformation, future events or otherwise.

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