Ströer : Publication annual financial report

Corona Challenge: Match-Winner OOH+

March 30th, 2020 | Ströer SE & Co. KGaA

A resilient Business Context

Record Results for 2019 and a successful Start to the new fiscal Year

Figures for fiscal 2019 another record result

• Historically low leverage ratio of 1.44 at the end of 2019

1	 Highly variable cost basis in the OOH business

• Stable cash flows from online business segments, some of which stand to benefit from the crisis

Effects on revenue and earnings expected for fiscal year 2020

• The first quarter of 2020 has seen seamless continuation of the

2	outstanding year 2019, becoming Ströer's 30th consecutive record quarter
 Ströer currently has available credit facilities and cash at hand of over
	EUR 500m and is thus very well equipped to weather all currently
	foreseeable crisis scenarios

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Ströer operates in one of the most resilient economical Ecosystems:

Focus on one domestic Market allows better Control within Crisis Scenario

• Germany with massive governmental support of 656.3 bn EUR+ (as a first step), deferral of various tax payments for companies

• German government with historically low debt ratio of < 60% with massive potential to overcome the crisis

• German health system strongest in Europe with 28,000 intensive care beds (to be doubled soon), additional contributions for treatment units and patients in hospitals etc.

• Ströer with 12,000+ staff highly relevant employer, experiencing massive and fast cooperative support of all authorities

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"PLUS"* Businesses with low or even positive Impact of current Crisis

Total Cash Generation of well over 100 m€ p.a.

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t-online.de and other portals

• Significant increase in reach (Visits +30% in March) and stickiness, Watson > 8M User
• High demand for any new formats (podcasts, vidcasts, animations etc.)
• Clear shifts of online audience towards news and communication (e-mail usage)

Online AdSales

• Increasing demand due to more Online screen times of consumers
• Growth in e-Commerce and News increasing total reach of Ströer's Digital Portfolio
• Strong tech stack setup is benefiting over-proportional from current programmatic growth

Statista

• Increasing demand on short term analyses, i.e. Corona data and analysis
• Subscriptions above plan due to aggressive marketing worldwide
• High flexibility to react on new demand

Asambeauty

• Increasing demand in e-Commerce,Direct-TV and direct delivery
• CAC decreasing rapidly
• Stockpiling by consumers

Call Center

• High service availability
• Strong increase in demand by major clients (Telco) due to increase of service requests
• High flexibility allows short-term balancing of demand and supply

*Non-Out-of-Home Businesses (i.e. Content/Online Media & Dialog/Direct Marketing)

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Highly flexible Cost Base of OOH Business

Even Revenue Drop of 85% would still allow Cash neutral Operations

Ströer Group (semi-)flexible OOH cost structure

Measures

		-80%
Rent / Lease	38%
Personnel	27%
		~100 m€
Maintenance	23%
	Other	12%

Normal	Worst Case Crisis Operation
Operation	10% utilization rate
[Full Year 2019]	-85% Revenue vs. 2019
= EUR 100m

• Short-time-workin large parts of the Ströer OOH Group in line with instruments within crisis mode
• High share of sales commissions (revenue-based) within staff cost
• Maintenance costs (incl. servicing & postering) fully scalable; out-sourced since the IPO
• Focus on relevant parts of infrastructure for ad market
• Consequent reduction of investments (CAPEX)
• Deferral of growth premiums and special payments as well as active management of building and fleet costs
• Over 90% of OOH advertising unit rents with revenue- based mechanics; expected reduction of lease payments to the public sector in return for reduced public audiences as well as maintaining local jobs

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OOH+ delivers all Factors for a resilient Advertising Ecosystem.

The ideal Starting Point in a Recovery Scenario

Very broad variety of services (broadcast, content, dialogue etc.)

OOH market is consolidated, high market entry barriers

Market share of market leader Ströer is clearly above 50%

Leading in AdTech due to proprietary tech stack

• programmatic capabilities

Scalable salesforce to address all market segments - locally, regionally & nation-wide

Strong share of wallet due to "+" assets driving access to re-covering advertising budgets

Integration of DOOH inventory in all common digital booking systems

Proprietary long term portfolio for further digitization

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Ströer in sustainably strong Position in recovering Environment

Going out will be the first Thing People will do after Crisis - Ströer will be ready!

Today

Values - 1:1

Tomorrow

60% market share helps to benefit disproportionately fast from the recovery

Different distribution arms can draw money from all areas

High percentage of DOOH can be added at short notice

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