Ströer SE & Co. KGaA

Investor Presentation • Aug 8, 2019

Q2 2019

Agenda

01

Strategic Update

02

What has changed? Business Update What has not changed?

03

Financial Status

How did we perform?

04 What is next?

Outlook

Results 6M 2019 (continuing Operations)

	Results 6M 2019 (continuing Operations)
m€		6M 2019	6M 2018	▲
	Reported	787.4	725.9	+8%
Revenues	Organic(1)	7.3%	8.0%	-0.7%pts
EBITDA (adjusted)		256.0	236.9	+8%
EBIT (adjusted)		114.8	108.7	+6%
Net income	(adjusted)(2)	84.0	78.5	+7%
Operating cash flow		173.7	153.0	+14%
Capex		47.0	60.0	-22%
		30 Jun 2019	30 Jun 2018
	Net financial debt (incl. lease obligations)	1,691.7	1,676.0	+1%

Tectonic Shifts in classic German Media Landscape

Decline of Print going on, decline of TV becoming visible – OoH wins significantly

German advertising market Q1-Q2 2018 vs. Q1-Q2 2019

Source: Nielsen Media Research Gross Advertising (Germany); *Nielsen 4

Digital Dividend pays off (1)

Incremental programmatic Revenues from Online to Public Video (DOoH)

Source: *Zenith Programmatic Marketing Forecast 2019; **Ströer data 5

Digital Dividend pays off (2)

Digital Dividend pays off (3)

Local Sales Approach maximizes Monetization of digital roadside Assets

OoH+ and Focus on Germany has proven to be a Success

Sustainable organic Growth and Profitability instead of M&A driven Investments

National focus allows:

• 1. More focused execution excellence
• 1. Less management dilution

Source: Ströer data 8

Statista fully on track to achieve full year targets 2019 No.1 Business Data Platform fully on Growth Track Statista 2019 – KPIs

• Strong upside potential for both, number of users and ARPU

Update HY1/2019

Revenue development in line with plans

• 30 M€ Revenues in HY1; annual target 60-65 M€
• Cashflow positive growth

Net revenue retention ~100%

• In developed markets >100%
• Price uplift for existing customers ~13%

Margin potential

• Ratio cost of sales vs. revenues: 30%
• Ratio cost of new business vs. cost of sales: 80%

Agenda

01

Strategic Update

02

What has changed? Business Update What has not changed?

03

Financial Status

How did we perform?

04 What is next?

Outlook

Ströer sustainably outperforming the Ad Industry

Source: Ströer data; *Median 11

Ströer with unparalleled Position in the Growth Industry OoH

Ströer data, https://www.dmi-org.com/downloads/Digital_Out_of_Home_Standorte_Screens.pdf; *excluding rights of promotion 12

Continuously improved Marketing- and Sales-Positioning

Best prepared to fully access local and national Clients

Media sales house ranking Q2 2019

Integrated Key Account Management consequently improved (1) Maximizing Share of Wallet

Integrated Key Account Management consequently improved (2) Deploying Innovation

Ebay Dynamic Public Video playout

Vattenfall

Zalando outlet Drive-to-store campaign Customer journey approach

Scaling our local Salesforce (1)

Effectiveness: More People, more Products

Strong growth of local & digital sales force

Diversified OoH, Online & Direct Media product portfolio across client clusters as well as branding & performance solutions

Sales team/FTEs	2016	2017	2018	e2019	e2020
Regional consultants	89	118	139	153+	160+
Local sales	243	284	340	670+	850+
"Digital only" consultants	62	58	107	151+	160+
Ströer SME only call center agents	40	35	45	65	70+
TOTAL	434	605	821	1,039+	1,235+

Scaling our local Salesforce (2) Efficiency: Fully automated local Sales Process (do-it-for-you)

Displays all clients on google maps with blockers for the hunter (red=blocked, green= available) Booking of Out-of-Home

• media via Google Maps
• Booking of sign media via booking form
• Check adress, contract partner details, payment Terms
• Create Contract
• Printing of signed or unsigned contract or mail to client with contract details

Summary: Sustainable and reliable Business Development

The Core of the OoH+ Strategy

Agenda

01

Strategic Update

02

What has changed? Business Update What has not changed?

03

Financial Status

How did we perform?

04 What is next?

Outlook

Profit and Loss Statement Q2 2019 Continuing Operations

Profit and Loss Statement Q2 2019
Continuing Operations
m€	Q2 2019	Q2 2018	▲ %	Analysis
Revenues	413.4	396.7	+4%	Expansion driven by 7.3% organic growth
EBITDA (adjusted)	138.5	129.3	+7%	Strong growth
Exceptional items	-6.3	-6.2	-2%
EBITDA	132.2	123.1	+7%
Depreciation & Amortization*	-91.4	-87.2	-5%	Larger consolidation scope
EBIT	40.8	35.8	+14%
Financial result*	-7.2	-8.1	+11%
Tax result	-5.7	-4.1	-40%	Following higher tax base
Net Income	27.9	23.7	+18%
Adjustments**	21.8	23.1	-5%
		46.7	+6%	Solid growth – adjusted and non-adjusted

Free Cash Flow Perspective Q2 2019 Continuing Operations

Free Cash Flow Perspective Q2 2019
Continuing Operations
m€	Q2 2019	Q2 2018
EBITDA (adjusted)	138.5	129.3
- Exceptional items	-6.3	-6.2
EBITDA	132.2	123.1
- Interest	-7.9	-8.1
- Tax	-12.4	-38.3
-/+ WC	-14.3	+6.5
- Others	-11.4	-3.8	line with previous year
Operating Cash Flow	86.1	79.4
Investments (before M&A)	-27.0	-27.6	1.8 1.8
Free Cash Flow (before M&A)	59.1	51.8	610.0
Lease liability repayments (IFRS 16)**	-39.9	-33.0
Free Cash Flow (adjusted)***	19.2	18.8
Note: Disposal of OoH Turkey classified as discontinued operations Net debt and adj. EBITDA of last 12 month adjusted for IFRS 16 Part of cash flow from financing activities **Before M&A and incl. IFRS 16 lease liability repayments

		Comment
  	Q2 with various phasing effects between quarters, mainly in WC tax payment in previous year		H1 with strong Free Cash Flow improvement from 3 to 38m€; Q2 slightly above previous year Tax payments according to plan; high one-time
	line with previous year		Investments into internal growth opportunities in
	Bank leverage ratio* stable at 1.8:
	1.8 610.0 30 Jun 2018	1.8 671.8 30 Jun 2019	Financial net debt Leverage ratio
			21

Segment Perspective Q2 2019 – Sustainable Growth Momentum Continuing Operations

• OoH Media with excellent performance in Q2 from strong customer demand across all sales channels
• Strong profitable growth of Digital OoH overcompensates portfolio changes within the segment
• Sustainable organic growth in Direct Media against strong prior year and portfolio changes

Agenda

01

Strategic Update

02

What has changed? Business Update What has not changed?

03

Financial Status

How did we perform?

04 What is next?

Outlook

Ströer Group's Key Performance Indicators – Guidance 2019*

We confirm our guidance of mid-single digit growth for the second half of the year

*incl. IFRS changes 24

Financial Calendar 2019

Profit and Loss Statement 6M 2019 Continuing Operations

Profit and Loss Statement 6M 2019
Continuing Operations
m€	6M 2019	6M 2018	▲ %
Revenues	787.4	725.9	+8%
EBITDA (adjusted)	256.0	236.9	+8%
Exceptional items	-14.6	-14.9	+2%
EBITDA	241.4	222.0	+9%
Depreciation & Amortization*	-175.8	-164.9	-7%
EBIT	65.6	57.0	+15%
Financial result*	-14.9	-15.8	+6%
Tax result	-8.9	-5.9	-52%
	41.8	35.4	+18%
Net Income
Adjustments**	42.2	43.1	-2%

**Adjusted for exceptional items (+14.6m€) and additional other reconciling factors in D&A (PPA related amortization and impairment losses, +34.6m€), in financial result (-0.1m€) and in income taxes (-6.9m€) 28

Free Cash Flow Perspective 6M 2019 Continuing Operations

Free Cash Flow Perspective 6M 2019
Continuing Operations
m€	6M 2019	6M 2018
EBITDA (adjusted)	256.0	236.9
- Exceptional items	-14.6	-14.9
EBITDA	241.4	222.0
- Interest	-13.8	-13.9
- Tax	-23.6	-41.5
-/+ WC	-21.9	-6.1
- Others	-8.4	-7.5
Operating Cash Flow	173.7	153.0
Investments (before M&A)	-47.0	-60.0
Free Cash Flow (before M&A)	126.7	93.0
Lease liability repayments (IFRS 16)*	-89.0	-89.9
Free Cash Flow (adjusted)**	37.7	3.1

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.