Ströer SE & Co. KGaA

Investor Presentation • Nov 13, 2024

Agenda

Group Update

Financials

Outlook

Q3 2024 Market Dynamics: (D)OoH outperforming the Ad Market

German Ad Market with positive Momentum in the third Quarter

Global Points of Reference

[^0]
[^0]: ${ }^{(1)}$ Internal estimates \& ZAW; ${ }^{(2)}$ Alphabet IR; ${ }^{(3)}$ Meta; ${ }^{(4)}$ Nielsen Numbers (gross) for Q3 2024; ${ }^{(5)}$ organic

Results 9M 2024

Strong Margin Extension and Cash Conversion

$\mathrm{m} €$		9M 2023	9M 2024	A
Revenues	Reported growth	1,348.3	1,460.9	$+8 \%$
	Organic growth ${ }^{(1)}$	$+7.9 \%$	$+7.8 \%$	$-0.1 \%$ pts
EBITDA (adjusted)		374.6	419.8	$+12 \%$
EBIT (adjusted)		157.7	192.2	$+22 \%$
Net income (adjusted) ${ }^{(2)}$		78.5	96.2	$+22 \%$
Free Cash Flow (adjusted)		$-18.7$	78.3	n/a
Capex		97.9	62.0	$-37 \%$

[^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

Programmatic drives digital Out-of-Home Industry Forecasts expect unchanged Momentum going forward

■ DOoH Non-programmatic ■ DOoH programmatic

Net advertising revenues Out of Home in Germany
Source: IDOOH - market growth OoH according to PwC Entertainment \& Media Outlook 2022 with corrections by IDOOH; 2020

Linear TV is experiencing a sustained Reduction in Viewing Time Massive Upside for DOoH (Public Video) based on Advertiser Challenges

TV Viewing time in minutes/day

Source: Extrapolation of time series data for TV and online video as part of the Media 2030 study by mindshare [schematic] | Basic data: AGF Videoforschung, ARD/ ZDF Mass Communication Trends, YouGov Brand Index | E14+: Adults older than 14 years | E14 -29: Adults between 14 and 29 years

DOoH Portfolio

Strong Audience Coverage after a Decade of Investing

902
Infoscreen screens
2,399 Station screens
2,381 Mall screens
1,042 Roadside screens
606 City screens
374 City Tower screens
77 Giant screens
$>38,500$ Ambient screens

DOoH Supply @Ströer

• Large portfolio of screens in different sizes up to $>70 \mathrm{~m}^{2}$
• Touchpoints from highly frequented locations to special interest touchpoints
  

DOoH Premium Screens

Covering all relevant high Frequency Touchpoints

Available through all relevant DSPs

Full Access to digital programmatic Demand

Ströer Data and Analytics Tool Set

The Base for successful Development - DOoH, OoH, Online Media

How does DOoH Audience Targeting work?

DOoH (Public Video) is a one-tomany medium. Therefore, an above-average concentration of the target group at the location is crucial for audience targeting and not the individual person in front of the screen.

1. Identification of target groups using audience data
2. Movement data for data projection into the room
3. Dynamic, target groupoptimized Public Video playout
   

Video Solutions

Reaching Target Group that TV can't cover

Challenge

TV infrequent viewers are individuals who rarely watch linear TV.

We close TV coverage gaps with an optimized video media mix.

By leveraging granular TV viewer data, campaigns can be precisely extended to DOOH locations where TV reach falls below a specific threshold.

Solution

Case:

Bayer Priorin | TV Boost

Public Video (DOOH) successfully closes TV performance gaps.

Strong effectiveness push in the campaign through deployment of data.

Results

• Ad recall: +11 ppt
• Supported brand awareness: +23 ppt
• Relevant set: +7 ppt

Potential

• Potential derivation German TV Market
• 16.5 bn TV Spendings in 2023
• 1\%TV Budget $=165 \mathrm{~m}$ gross Revenue potential
• Biggest 3 TV advertisers: Procter, Ferrero and Henkel
• Declining TV spending 23 vs. 22 by $-3 \%$ [Nielsen]
• TV reach losses from 2019 to 2022 of approximately $7 \%$

Audience Solutions More Efficiency in catching the right target Group

Challenge

Just like in online media, identifying target groups through audience data is becoming increasingly important.

We use movement data to project these insights into physical spaces, enabling dynamic, target group-optimized public video playback.

Our new data partnership with Telefónica elevates public video audience targeting to a new level.

Solution

Case:
Unilever Veggie

Addressing the veggie target group.

Through data-driven deployment of public video, the campaign was amplified in areas with a particularly high concentration of the target audience of vegans.

• Audience uplift: 2.7 x

Potential

• Potential derivation via FMCG
• 6.8 bn spendings 2023 in FMCG sector in the German market
• Ströer SoW through OOH + DOOH 2.5\%
• $+1 \%$ SoW $=70 \mathrm{~m}$ gross revenue potential

Strategic Acquisition of RBL Media further strengthens OoH

• Logical step in Ströer's strategy of continuous and targeted expansion of our high-reach digital OoH (DOoH) advertising portfolio.
• Significant expansion and addition to our core OoH business in Leipzig, Essen, Dortmund, Aachen, Münster and Erfurt.
• Opens up considerable further potential for digitalization.
• Medium term, additional contribution to earnings*, including synergies, of more than EUR 17 m .

Jetzt digital in

Communal Advertising Rights robust and stable Development of Top 22 Cities (Ströer with 1,300 Municipality Concessions)

Active municipal marketing rights | City overview from 300,000 inhabitants

Addition due to RBL acquisition 10/2024

Agenda

Group Update

Financials

Outlook

Profit and Loss Statement Q3 2024

m€	Q3 2023	Q3 2024	A
Revenues	483.6	495.9	$+3 \%$
Organic growth	$+9.0 \%$	$+3.3 \%$	$-5.7 \%$ pts
EBITDA (adjusted)	147.5	156.5	$+6 \%$
Exceptional items	0.3	$-3.6$	n/a
EBITDA	147.7	152.9	$+3 \%$
Depreciation \& Amortization ${ }^{(1)}$	$-78.6$	$-80.6$	$-3 \%$
EBIT	69.2	72.3	$+4 \%$
Financial result ${ }^{(1)}$	$-19.8$	$-18.3$	$+8 \%$
EBT	49.4	54.0	$+9 \%$
Tax result ${ }^{(2)}$	$-14.2$	$-16.0$	$-13 \%$
Net Income	35.2	38.0	$+8 \%$
Adjustments ${ }^{(3)}$	3.3	3.4	$+4 \%$
Net Income (adjusted)	38.5	41.4	$+8 \%$

[^0]
[^0]: ${ }^{(1)}$ Thereof attributable to IFRS 16 in D\&A $53.7 \mathrm{~m} €$ (PY: $50.9 \mathrm{~m} €$ ) and in financial result $8.2 \mathrm{~m} €$ (PY: $8.1 \mathrm{~m} €$ )
${ }^{(2)}$ Tax rate according to IFRS is $29.6 \%$ (PY: $28.7 \%$ )
${ }^{(3)}$ Adjusted for exceptional items ( $+3.6 \mathrm{~m} €$ ) and additional other reconciling factors in D\&A (PPA related amortization and impairment losses, $+3.3 \mathrm{~m} €$ ), in financial result ( $-0.6 \mathrm{~m} €$ ) and in income taxes $(-2.8 \mathrm{~m} €$ )

Free Cash Flow Perspective Q3 \& 9M 2024

	Q3		9M
m€	2023	2024	2023	2024
EBITDA (adjusted)	147.5	156.5	374.6	419.8
- Exceptional items	0.3	-3.6	-4.0	-11.8
EBITDA	147.7	152.9	370.7	408.0
- Interest	-16.1	-12.3	-44.6	-47.7
- Tax	-27.8	-14.4	-55.0	-38.9
-/+ WC	-9.0	-2.4	-34.5	-18.4
-/+ Others	-9.6	-0.3	-11.1	-16.9
Operating Cash Flow	85.2	123.5	225.3	286.1
Investments (before M\&A)	-35.1	-21.1	-97.9	-62.0
Free Cash Flow (before M\&A)	50.2	102.5	127.4	224.1
Lease liability repayments (IFRS 16) ${ }^{(2)}$	-53.2	-45.9	-146.1	-145.8
Free Cash Flow (adjusted) ${ }^{(3)}$	-3.1	56.6	-18.7	78.3

Comment

• Free Cash Flow (adj.) positive and significantly improved in Q3 and 9M especially due to higher earnings contribution, continued Working Capital improvement and overall lower investment level compared to PY
• First decline of Cash out from interest in Q3 after 2 years of rising interest rates
• Lower IFRS 16 lease repayments and cash out for taxes in Q3 due to phasing effects
• Higher earnings combined with lower Net Debt compared to PY and Q2 leads to significant improvement of bank leverage ratio ${ }^{(1)}$
  

[^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

	Q3			9M
m€	2023	2024	A	2023	2024	A
Segment revenue, thereof	217.0	236.5	$+9.0 \%$	575.2	660.8	$+14.9 \%$
Classic OoH	127.3	130.6	$+2.6 \%$	340.4	381.4	$+12.0 \%$
Digital OoH	74.7	92.9	$+24.4 \%$	190.0	241.6	$+27.2 \%$
OoH Services	15.1	13.0	$-13.7 \%$	44.8	37.8	$-15.7 \%$
EBITDA (adjusted)	101.6	115.4	$+13.6 \%$	251.6	305.8	$+21.5 \%$
EBITDA margin (adjusted)	$46.8 \%$	$48.8 \%$	$+2.0 \%$ pts	$43.7 \%$	$46.3 \%$	$+2.5 \%$ pts

Comment

• OoH Media with ongoing revenue growth in Q3, especially in Digital OoH with a continued growth rate of $>20 \%$; organic growth even higher (Q3: $+10 \% ; 9 \mathrm{M}:+16 \%$ )
• Double digit growth rate of EBITDA (adj.) for Q3 and YTD, even higher than revenue growth rate
• EBITDA margin (adj.) with improvement of 250 basis points (YTD), before IFRS 16 effects margin improvement of $>4 \%$-points

Segment Perspective - Digital \& Dialog Media

	Q3			9M
m€	2023	2024	A	2023	2024	A
Segment revenue, thereof	207.6	212.3	$+2.3 \%$	579.3	631.0	$+8.9 \%$
Digital	106.2	112.4	$+5.8 \%$	287.6	315.9	$+9.8 \%$
Dialog	101.4	99.9	$-1.5 \%$	291.8	315.2	$+8.0 \%$
EBITDA (adjusted)	38.1	36.8	$-3.3 \%$	102.0	105.4	$+3.4 \%$
EBITDA margin (adjusted)	$18.3 \%$	$17.4 \%$	$-1.0 \%$ pts	$17.6 \%$	$16.7 \%$	$-0.9 \%$ pts

Comment

• Digital with continued revenue increase, mainly due to ongoing strong growth in programmatic sales
• Dialog shows positive organic revenue development in Q3, driven by Call Centers; high single-digit revenue growth YTD
• EBITDA (adj.) with ongoing increase YTD, but margin slightly below PY

Segment Perspective - DaaS \& E-Commerce

	Q3			9M
$m €$	2023	2024	A	2023	2024	A
Segment revenue, thereof	90.4	85.5	$-5.5 \%$	261.6	263.0	$+0.5 \%$
Data as a Service	36.0	40.7	$+13.1 \%$	111.5	120.5	$+8.1 \%$
E-Commerce	54.4	44.7	$-17.7 \%$	150.1	142.5	$-5.0 \%$
EBITDA (adjusted)	14.8	11.3	$-23.6 \%$	42.0	32.4	$-22.8 \%$
EBITDA margin (adjusted)	$16.3 \%$	$13.2 \%$	$-3.1 \%$ pts	$16.1 \%$	$12.3 \%$	$-3.7 \%$ pts

Comment

• Statista: Further acceleration in sales growth
• Asam: Lower sales against very high PY comps mainly in international wholesale distribution; in contrast, continued strong growth in eCom channel
• Decline in EBITDA (adj.) despite increase in earnings and margins at Statista, as Asam's income from the international wholesale distribution channel decreased

Agenda

Group Update

Financials

Outlook

Outlook

For Q4 2024, we expect revenue developments as follows:

• OoH up in a high single digit percentage range, driven by on-going strong DOoH momentum
• Digital \& Dialog should increase in a mid-single digit percentage range
• DaaS \& E-Commerce should accelerate driven by Statista

Our full-year guidance remains unchanged.

Financial Calendar 2024 / 2025

Q4 2024
November 13 Publication of Q3 Quarterly Statement

Q1 2025
March 6
Publication of
Preliminary Figures 2024

Q2 2025
Q3 2025
Q4 2025
November 11 Publication of Q3 Quarterly Statement

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.

YTD 2024 Market Dynamics: (D)OoH outperforming the Ad Market German Ad Market with positive Momentum

Global Points of Reference

Local German Peers

Ströer

Reported Net Revenues

Profit and Loss Statement 9M 2024

m€	9M 2023	9M 2024	A
Revenues	1,348.3	1,460.9	$+8 \%$
Organic growth	$+7.9 \%$	$+7.8 \%$	$-0.1 \%$ pts
EBITDA (adjusted)	374.6	419.8	$+12 \%$
Exceptional items	$-4.0$	$-11.8$	$>-100 \%$
EBITDA	370.7	408.0	$+10 \%$
Depreciation \& Amortization ${ }^{(1)}$	$-231.2$	$-237.2$	$-3 \%$
EBIT	139.4	170.8	$+23 \%$
Financial result ${ }^{(1)}$	$-48.2$	$-54.6$	$-13 \%$
EBT	91.2	116.2	$+27 \%$
Tax result ${ }^{(2)}$	$-25.7$	$-34.8$	$-35 \%$
Net Income	65.5	81.5	$+24 \%$
Adjustments ${ }^{(3)}$	13.0	14.7	$+13 \%$
Net Income (adjusted)	78.5	96.2	$+22 \%$

[^0]
[^0]: ${ }^{(1)}$ Thereof attributable to IFRS 16 in D\&A 157.9 m€ (PY: 148.5 m€ ) and in financial result $23.9 \mathrm{~m} €$ (PY: $22.3 \mathrm{~m} €$ )
${ }^{(2)}$ Tax rate according to IFRS is $29.9 \%$ (PY: $28.2 \%$ )
${ }^{(3)}$ Adjusted for exceptional items ( $+11.8 \mathrm{~m} €$ ) and additional other reconciling factors in D\&A (PPA related amortization and impairment losses, $+9.7 \mathrm{~m} €$ ), in financial result ( $-0.3 \mathrm{~m} €$ ) and in income taxes $(-6.4 \mathrm{~m} €$ )