http://idcee.org/p/andreas-otto/ Andreas is an investment director at Seven Ventures, the strategic investment arm of ProSiebenSat.1 Media AG, Germany’s largest TV network. Prior to joining Seven Ventures, he was the Co-Founder and Managing Director of The Iconic (www.theiconic.com.au), an online fashion retailer in Australia and New Zealand. The company, funded by Rocket Internet, quickly became the market leader. Before he was a Project Leader at the Munich office of The Boston Consulting Group (BCG), focusing on sales & marketing topics at global consumer goods companies. Andreas holds an MBA from the University of California, Berkeley and a BSc from the European School of Business. Pic's are here: http://www.flickr.com/photos/idcee/sets/ More @ http://idcee.org Follow us on: YouTube: http://www.youtube.com/user/OfficialIDCEEChannel Facebook: https://www.facebook.com/IDCEE Linkedin: http://www.linkedin.com/groups/IDCEE-3940138 Twitter: https://twitter.com/idcee_eu Google+: http://gplus.to/idcee Flickr: http://www.flickr.com/photos/idcee/collections/

1. TV media as a growth driver for B2C
internet companies in Europe
Andreas Otto, SevenVentures GmbH
IDCEE, Kiev October 9 - 10

2. 2
Agenda
Market trends

3. 4
PStarornag ilnlcereals eu ins paargalleel usage
TV still is the lead
medium
• TV creates reach,
community and
emotions
• Screens are with 59%
still dominant in media
usage
250
200
150
100
50
0
2004 2006 2008 2010 2011 2012 2013
+0% in 2013
TV
Online
Print
205 min.
115 min.
28 min.
Average daily media usage in Germany
in minutes, 14-49 years
SevenOne Media/mindline 2013
+20% in 2013
+0% in 2013

4. 5
TV behavior influenced:
2nd/3rd screen capturing
leads to parallel usage
• Interacting with friends and
gathering of information
• 79% of 14 to 49-year-olds
actively using computer or
mobile devices whilst
watching TV
SevenOne Media/Navigator: “Mediennutzung 2012”

5. 6
Multiplatform exploration
becomes key in the changing
media environment
Smart TV – over 20m German households will have an
internet enabled TV device by 2016
• OTT market is changing: shift from PC
to Mobile and Smart TV
• High growth of internet enabled TV
devices (~20m by 2016 with +29%
CAGR 2011-16)
• By 2016, > 50 % of all German TV
households will use TV and internet
content on their TV screen
• Various provider fighting for portal
ownership on TV set
• Multiplatform distribution and user
experience becoming key for traditional
broadcasters
Internet enabled TV devices
in m
HHs with other internet enabled TV devices*
HHs with internet enabled HbbTV devices
5.6
5.4
7.5
0,4 1,1
CAGR 2011-16
+29%
10.1
2,5
14.1
5,2
* Via STB/receiver, games consoles, Blu-Ray-Player
Source: Goldmedia, BLM
14.6
17.8
9,6
20.1
13,4
5,2
6,4
7,6
8,9
8,2
6,7
2011 2012 2013 2014 2015 2016
• 20m Internet enabled TV
devices in GER by 2015
• Thereof about 25%
habitually using Internet
on TV
• eCommerce supported
by multi-platform media
Informa, McKinsey Connected TV Quantitative Survey 2011, McK iConsumer survey 2011 Germany

6. 7
P7S1 Group –
the leading TV player in GER
Agenda

7. 8
6 Free TV Stations
+3 pay TV channels
Market Share
Monthly Online
video views
SevenVentures is part of ProSiebenSat.1 Media AG
TV Households
in GSA
P7S1 Group
Unique User

8. 9
ProSiebenSat.1 footprint in German-speaking Central Europe
Austria
Switzerland
Germany
launched in 1984
launched in 1988
launched in 1992
launched in 2010
launched in 2013
launched in 2013

9. 12
Agenda
SevenVentures

10. 13
SevenVentures pursues two aims in co-operations
1 2
Venture Growth Strategic investments
• Co-operations with limited time
horizon(2-3 years)
• Media investment for
performance-related
remuneration
• ‘Path to majority’
• Fit within clusters, e.g. Travel
• Media and cash investment
• Operational involvement
Low risk investment approach through predominantly media investments and selected
cash investments for larger bolt-on acquisitions

11. 15
TV advertising has three main campaign effects based on a unique
consumer reach and branding power
1 2 3
Direct response Brand building Market creation
• Massive customer reach
through TV
• Fast creation of brand
awareness
• Sustainable brand
establishment
• Creation and fast
development of new and
untapped online segments
at preferred TV costs
• TV is the most suitable
communication medium to
create product awareness
• TV spots show direct
increase of traffic and sales
• Fly-in banner with
dedicated landing page
… and TV has a positive effect on all further marketing-channels

12. 16
TV has a positive effect on the other marketing channels TV Media
• More direct traffic
• More brand searches
• Improved conversion rates, sales & basket values (over time)
• Sustained higher traffic-levels, even post-campaign
• High SEM efficiency: increased search volume, increased quality score,
increased click-through-rate
• Improved SEO: increased direct traffic share/ virality
• Improved other performance channels, i.e. affiliate, display etc.
SEM
• Very good conversion rates from TV to mobile (minor ‘Medienbruch’): up to
40% of mobile traffic generated through TV campaigns  importance to have
a good mobile offering! (beside the online presence)
• TV identified as ‘App-Booster’: generation of new downloads, push into app
store charts and re-activation of inactive users
Direct impact
Performance marketing
Mobile traffic &
app downloads
Visits
Conversion
Rates
Branding
Customer
Re-activation
Customer
Loyalty
SEO
Revenue

13. 17
1 Example moebel.de: significant performance improvement due to
moebel.de
Media push generated
more traffic of better
quality vs. regular search
engine traffic (pre-flight vs.
flight):
• ‘Best-in-class’ CPV
• Clickouts TV-traffic:
36% higher than non-
TV-traffic
• Avg. bounce rate
(overall):
-15%
• Avg. PIs per visit
Mar May Jul Sep Nov Jan (overall): +34%
Number of visits
2013/14 with TV
2012/13 without TV
Mar May Jul Sep Nov Jan
Click-outs
2013/14 with TV
2012/13 without TV
TV-push
TV start in
Aug 2013
TV start in
Aug 2013

14. 18
Example Tirendo: realization of fast successful exit to strategic
partner
TV facilitated the build up… …for successful exit
• Tirendo founded in 2012 with strong
backing of 7V from the very beginning
• Strong media push via P7S1 with
Sebastian Vettel as endorser
• Double-digit million revenue
already in 2nd operating year
• Acquisition of Tirendo by biggest &
well-established only-online-player
with EUR 500m revenues per year,
active in 42 countries and 6 million
members
• Exit within 12 months
• EUR 50m trade sale
2

15. 19
Example Zalando: became Europe's No.1 online shoe retailer
and clear market leader through extensive media push
Zalando
Extensive media push created clear
European market leader in online
shoes / fashion
▪ Sales of EUR 1,8bn in 2013 (increase
of 50% vs. 2012)
▪ 95% brand awareness
▪ Online audience increase of 40%
from Sep 2011 to Sep 2013 (5,2m vs.
7,3m unique visitors)
▪ GMV of up to EUR 100m p.a.
Launch TV
campaign
01/2006 07/2012
Zalando Schuhe online
Source: Zalando, Google Insights, Press releases
Decreasing category
importance, search
for Zalando only
Search for
category
and Zalando
No organic
search for
'shoes online'
3

16. 20
Agenda
Pan-European Media Alliance

17. 21
Pan-European media alliance – Making European market entry easier
Pan-European Alliance Investment Story
Internationalize M4E/R model
across Europe
We are #1 media investor in Germany with a high
degree of operational excellence
International ventures ask for market entries
covering Europe and not Germany standalone
Developed network to make European market entry
simpler
✔

18. Agreements in place with four leading TV networks in Europe
Broadcaster Country Description
TF1
MTG
Dogan
TVN2
• Revenue: 2.5B €1
• Market Share: 29% share of voice
• Business lines: TV broadcasting, e-TF1 (digital),
production & enterprises
• Revenue: 1.52B €1
• Market Share: 35% share of voice
• Business lines: TV broadcasting, radio, content
production & MTGx (digital)
• Revenue: 1B €1
• Market Share: 19,5% TV ad market share
• Business lines: TV broadcasting, digital &
services, Int’l, OTT & radio
• Revenue: 0.4bn €1
• Market Share: 33% share of voice (w/o 3rd party channels)
• Business lines: TV broadcasting,
online VOD & pay-TV
22 1. Statistics of 2013 2. Signature run

19. 23
>750
>100
>250
>150
Thank you!
Q&A.
>250
Andreas Otto
Director
SevenVentures GmbH
Medienallee 4
D-85774 Unterföhring
Tel. +49 (0) 89/9507-8680
www.sevenventures.de
andreas.otto@sevenventures.de