Ströer SE & Co. KGaA

Investor Presentation • Mar 3, 2020

Preliminary Figures FY 2019

March 3rd, 2020 | Ströer SE & Co. KGaA

Preliminary Results FY 2019 (continuing Operations)

	Preliminary Results FY 2019 (continuing Operations)
m€		FY 2019	FY 2018	▲
	Reported	1,591.1	1,507.8	+6%
Revenues	Organic(1)	7.1%	7.9%	-0.8%pts
EBITDA (adjusted)		570.5	538.2	+6%
EBIT (adjusted)		280.4	266.2	+5%
Net income	(adjusted)(2)	210.5	198.6	+6%
Operating cash flow		483.7	409.8	+18%
Capex		113.5	111.9	+1%
		31 Dec 2019	31 Dec 2018
	Net financial debt (incl. lease obligations)	1,541.9	1,560.5	-1%

Core Business Focus: OOH+

Focus on sustainably growing core business OOH

• OOH forecasts positive, strong momentum
• Macro trends urbanization & mass mobility
• First quarter ever TV with declining share in Ad market

Leveraging organic growth opportunities

• Regional and local demand
• Structural investments in ERP and Sales Systems
• Investment in more programmatic interfaces to DSPs
• Transformation of analogue premium sites into digital

OOH+

No relevant M&A

• Disposal of non-German businesses
• Disposal of E-Commerce & intermediate models
• Direct Media: Focus on Sales Services

Statista & Asam: Dynamic and sustainable Revenue Development

Out-of-Home Market continuously outperforms Ad Market

Source: Nielsen Germany 2017-2019 7

OOH remains the structural Winner in the German Ad Market

Significant reorientation in classic media 2019 vs. PY* TV OOH +25% +61% +100% +21% +162% -2% -8% -48% +6% +26%

Positive influence by market driving factors OOH with continuous Momentum in Germany 60% market share**

Source: *Nielsen Germany; **Ströer Data 8

OOH+ globally unique and extremely robust: Ströer Key KPIs

Organic Growth robust and stable each Quarter since 2013 Ströer Growth Rate sustainably outperforming the Ad Industry

OOH+: Four organic Focus Areas

Leveraging Inventory Assets through ongoing Digitization

Improving Flexibility of Supply by Usage of proprietary Tech & Data

Database:

• online targeting

Data sources:

• Online data of Ströer DMP
• Data from cooperation with e.g. Otto Group Media
• Household data of Deutsche Post

New Public Video Product: Dynamic Creation

• Campaign can react automatically and in near real time to changing parameters
• Creatives can be adapted to campaign objectives
• High flexibility of campaign mgmt.
• The content of the ad changes automatically depending on the target group concentration, location or other criteria

Audience based Targeting OOH & Online Data collection and merging into Ströer-ID

Local Sales Force increasing Productivity

Local Sales Force increasing Productivity
	Strong growth of local & digital sales force
Sales team/FTEs	2016	2017	2018	2019	e2020
Regional consultants	89	178	198	158+	170+
Local sales	243	295	441	662+	850+
"Digital only" consultants	62	76	124	162+	220+
Ströer SME only call center agents	40	56	58	60	80+

Local Market know-how and execution quality

consultancy and booking process

Integrated Campaigns offering broader Access to Clients

OOH	Content	Direct

Success cases

T-Online Content Portal continuously evolving Successful Development of Visits

Daily newsletter successfully established in Germany

*Visits 2018 based on the development year-to-date 2018 17

Focus on Sales & Performance in Direct Marketing Reducing Service Share of Dialog Portfolio – tackling Results from GDPR Contact Centers "Sales & Service2Sales"

Door2Door Sales

• Strong development in last two years
• Structural tailwind expected for next 5 years

• Digitization of sales processes driving margin

• Growing customer base into e-commerce and digital business including tech/data integration

• Good cross-selling opportunities with core business to strengthen share of wallet

• Limited growth and margin potential and lower impact on group access to customer

• De-consolidation of 12 sites & joint venture annualized ~ 85m revenues

Profit and Loss Statement FY 2019 Continuing Operations

m€	FY 2019	FY 2018	▲ %
Revenues	1,591.1	1,507.8	+6%
EBITDA (adjusted)	570.5	538.2	+6%
Exceptional items	-34.4	-27.0	-27%
EBITDA	536.1	511.1	+5%
Depreciation & Amortization*	-358.7	-341.2	-5%
EBIT	177.4	169.9	+4%
Financial result*	-32.6	-33.5	+3%
Tax result	-25.1	-21.9	-15%
Net Income	119.7	114.5	+5%
Adjustments**	90.8	84.1	+8%
Net Income (adjusted)	210.5	198.6	+6%

*Thereof attributable to IFRS 16 in D&A 178.4m€ (PY: 168.4m€) and in financial result 20.7m€ (PY: 21.2m€)

**Adjusted for exceptional items (+34.4m€) and additional other reconciling factors in D&A (PPA related amortization and impairment losses, +68.7m€), in financial result (+2.3m€) and in income taxes (-14.5m€) 20

Segment Perspective FY 2019 – Solid organic Growth

Portfolio Optimizations soften reported View

• Sustainable growth in OOH Media supported by local/regional sales initiatives and strong national demand
• Strong profitable growth of Digital OOH overcompensates effects from portfolio changes within the segment
• changes within the segment; material reshaping and restructuring efforts especially in call center business

Transition of net Income to net Income (adjusted) Continuing Operations

Development of Net Income (adjusted) Comment

• Net income adjusted is central parameter of our dividend policy
• Growth in Net Income (adjusted) vs. PY basically driven by improved operational performance 199
  • Exceptional expenses linked mainly to integration reorganization efforts
  • Adjustments in D&A mainly refer to PPA related amortization
  • Increase in taxes follows higher tax base (adjusted)

Note: Figures are preliminary and unaudited; Figures w/o result from discontinued operations 22

Free Cash Flow Perspective FY 2019 Continuing Operations

Free Cash Flow Perspective FY 2019
Continuing Operations
m€	FY 2019	FY 2018
EBITDA (adjusted)	570.5	538.2
- Exceptional items	-34.4	-27.0	mainly driven by:
EBITDA	536.1	511.1
- Interest	-29.0	-30.2
- Tax	-39.2	-54.1
-/+ WC	+11.2	-4.8
- Others	+4.6	-12.1
Operating Cash Flow	483.7	409.8
Investments (before M&A)	-113.5	-111.9	1.45 1.44
Free Cash Flow (before M&A)	370.2	297.9	522.6
	-174.7	-158.3
Lease liability repayments (IFRS 16)**			31 Dec 2018

	Comment
 mainly driven by:		Free Cash Flow strongly above previous year
	better operational performance
		Positive Working Capital development
		high one-time tax payment in previous year
 software and other intangibles		Sustainable high investments in digitalization,
 Bank leverage ratio* stable at low 1.4:
1.45	1.44
522.6	547.6	Financial net debt Leverage ratio
31 Dec 2018	31 Dec 2019

Sustainability Strategy 2030

Reduction of governance risks

• Increasing transparency requirements of core investors
• Investors are increasingly focusing on compliance topics
• Reduction of risks in more complex economic processes increasingly important
• Investors expect more "depth" in sustainability reporting
• EU will require additional sustainability information to better identify gaps and progress

Efficient use of resources

• Investors increasingly appreciate companies with comprehensible sustainable actions
• European Union plans climate neutrality and a much more effective recycling economy with the "Green Deal"

Human Capital

• Efficient and sustainable use of the scarce resource of employees
• Marketing tool and decision criteria for applicants

Corporate Governance Social Environmental CSR

Focus on Digitalization of our Business Processes Robotic Process Automation and similar Technologies used across our Business

Process Mining

Analysis and interpretation of digital process flows across system landscape

Use Case: Realtime analysis of the purchase to pay process

Use Case: Automation of accounting tasks Use Case: Automation of dialog processes

Robotic Process Automation

Software as a Service

Cloud-based platforms for core operations

• Use Case: Core (D)OOH booking and playout platform
• Use Case: Customer relationship management platform

Platform technology to newly design and optimize process flows

Use Case: OOH internal sales workflows

Use Case: Accounting workflows between ERP and operative systems

Business Process Management

Ströer Group's Key Performance Indicators – Guidance 2020

For 2020 as a whole, we expect sales and earnings growth in the mid single-digit percentage range and are looking forward to a strong start to the new financial year.

Financial Calendar 2020

Appendix

Profit and Loss Statement Q4 2019 Continuing Operations

Profit and Loss Statement Q4 2019 Continuing Operations
m€	Q4 2019	Q4 2018	▲ %
Revenues	468.1	448.2	+4%
EBITDA (adjusted)	183.3	179.0	+2%
Exceptional items	-10.7	-5.1	<-100%
EBITDA	172.6	173.9	-1%
Depreciation & Amortization*	-94.9	-92.5	-3%
EBIT	77.7	81.4	-5%
Financial result*	-9.8	-10.7	+8%
Tax result	-13.7	-13.0	-6%
Net Income	54.1	57.8	-6%
Adjustments**	28.1	23.4	+20%

Free Cash Flow Perspective Q4 2019 Continuing Operations

Free Cash Flow Perspective Q4 2019
Continuing Operations
m€	Q4 2019	Q4 2018
EBITDA (adjusted)	183.3	179.0
- Exceptional items	-10.7	-5.1
EBITDA	172.6	173.9
- Interest	-9.0	-10.6
- Tax	-7.2	-0.4
-/+ WC	+36.2	+36.4
- Others	+8.5	-10.1
Operating Cash Flow	201.1	189.3
Investments (before M&A)	-34.9	-23.2
Free Cash Flow (before M&A)	166.2	166.0
Lease liability repayments (IFRS 16)*	-55.9	-45.5
Free Cash Flow (adjusted)**	110.4	120.5
Note: Disposal of D+S 3600 Group and OoH	Turkey classified as discontinued operations
Part of cash flow from financing activities *Before M&A and incl. IFRS 16 lease liability repayments

Segment Perspective Q4 2019