Capital Markets Day –

Perspective on SevenVentures Unit

Hans Fink, October 5, 2011

2

Addresses market segments that cannot be fully

exploited by Classic Media Sales

Source: P7S1

Classic

Inventory

P7S1 TV Media Inventory

Unutilized Inventory

Unutilized Inventory

Classic Sales Models for

core Inventory

• Close cooperation with big

media agencies

• Commitment and volume

based pricing models

Innovative Sales &

Financing Model M4R/E for

• Fast growing, exit-driven

online companies with need

for variable fee structures

• Small companies with

attractive products in TV-

affine segments with cash

constraints/financing needs

(e.g. Seven-Entertainment

for music labels)

3

Objectives & Benefits of M4R/E

Source: P7S1

1

2

3

4

5

Builds new market segments (with working capital / cash

constraints, high commercial risk) for TV advertising

Stimulate existing market segments for TV advertising

(see Dating example)

Participate in long-term growth of new customers

Capitalize exit/upside of online companies

Anti-cyclical inventory utilization with more independence

from fluctuation in ad market

4

Multiple value drivers

Source: P7S1

ILLUSTRATIVE EXAMPLE

1

2

4

Acquire if attractive

business and has

strategic fit

Discontinuation if target

below expectations

Participate in exit

proceeds

3

Convert into loyal

paying classical

TV customer

Revenue building blocks Exit options

€

Minimum

guarantee-driven

income

M4R/E

Customer Revenue share

driven income

Equity-driven

income

5

Clear screening criteria to identify suitable targets

1. Referring to M4R/E deals

Source: P7S1

No relevant existing or likely TV / SOM spend TV-affine product category

Clear target group fit

Upside from stimulatory TV spend in category

No financial, operational, legal risks

2 - 3 year commitments (excl. extension) with early termination clauses for 7V

Overall yield comparable to SOM yield / volume clusters

For M4E: Long-term fit with P7S1 and solid cash flows or exit fantasy through equity / call options

6

M4R/E Portfolio Development – 3 Phases

2008 - 2009

• Music / Music deals

• Online Gaming deals

2010

• Optimized terms /

processes

• M4R/E Push

2011 - 2012

• Best practice processes,

governance, portfolio

management

• Industry sector initiatives

• Potential partnerships

with VCs

Focus on adjacent and attractive industries

Source: P7S1

Widen and test new

approaches

Roll-out and expand

First success

7

Example Zalando: Europe's #1 online shoe retailer

based on brand building and sales push through TV

• Participating in two revenue streams:

- Minimum Guarantee

- Exit value

• Founded in Oct. 2008, first TV campaign in Q4 2009

• Germany's largest online shoe retailer (260 brands)

• Aggressive future growth being fueled by category- and

geographic expansion

• Zalando advertising stimulated TV investments of

various other eCommerce companies

Source: P7S1

Zalando – A Success Story

8

Example Yokebe: becoming 2nd biggest player in

German diet drink segment within 1 year after launch

• Attacker of #1 player Almased in German diet

drink market

• Founded in early 2010, first TV campaign in Q3 2010

• Listed in >5,500 top pharmacies and successful

online distribution

• Core for further promising OTC products

(e.g. “Lact-o-Stop”)

Source: P7S1

Yokebe – Jump Start

9

Leveraging unsold media inventory

to grow own assets

Aspiration

• Strategic investments

(25+% equity stake)

in promising business

models

• Scale-up of digital

ventures portfolio

• Buildup of strong

lifestyle brands to

create brand equity

and commerce /

licensing income

• Become relevant

revenue contributor to

Group P&L

Source: P7S1

Own assets / Digital Commerce + Physical

Health /Beauty

Travel /Leisure /

Lifestyle

Fashion / Design

Digital Services

& Consumer /

Social platforms

NewCo. Jewellry

2011

2012

Nov.

Nov./Dec.

Dec.

Feb.

Jan.

Jan.

Mar.

Jan.

Jan.

+ Growth

10

Example MeetOne.com – Building innovative dating

platform with bigpoint founders

Source: P7S1

• Freemium social dating platform

with international footprint and

multiplatform-approach

• Management Team: Founders of

Bigpoint

• Revenue Model: Virtual item

selling and micro transactions

instead of monthly fixed fee

Description

• Minority equity stake

• Significant share on revenues

(attractive recurring yield on

media spend)

• Attractive mid term exit value

Terms

Expansion of our music business

Source: P7S1

Music Promotion Own Products/New Markets JVs and Management

• Promotion of external

events and musicals

• "Musik Tip" format for

promotion of external

artists, CDs, downloads

• JVs with major labels to

promote and monetize

"joint" artists

• Management of artists

(360° licenses)

• Exploitation of music

records master rights

• 2nd biggest independent

label in Germany

• Signing of own artists1

• Partner and create own

events

• Exploitation of licenses

from external products2

1. e.g. Udo Lindenberg, Lenny Kravitz, Lena 2. incl. games

11

Capital Markets Day –

Perspective on SevenVentures Unit

Hans Fink, October 5, 2011