Corporate Strategy and Sustainability

We are using the opportunities of a changing market environment to secure the Group’s dynamic and profitable growth in the long run. At the same time, ProSiebenSat.1 is fulfilling its corporate responsibility, as we are convinced that a successful corporate strategy cannot be measured by financial results alone. As a media company, we make an important contribution to the dissemination of information and diversity of opinion in society. Simultaneously, our philosophy as an employer is to serve the individual interests of our employees. These are two examples of how we consider the needs of our internal and external stakeholders in our corporate activities.

Directly generated and distributed economic value [G4-EC1]

 

 

 

 

 

EUR m

 

2016

 

2015

Revenues

 

3,799

 

3,261

Gross revenue profit

 

1,779

 

1,496

 

 

 

 

 

Personnel expenses

 

616

 

477

Wages and salaries

 

544

 

423

Social security contributions and expenses for pensions and other employee benefits

 

72

 

54

Other operating expenses

 

11

 

8

Other operating income

 

34

 

25

Income taxes

 

–206

 

–208

Consolidated net profit (after non-controlling interests)

 

402

 

391

Underlying net income

 

513

 

466

Dividend payments

 

435

 

386

Cash flow from investing activities

 

–1,623

 

–1,522

The Group is rigorously pushing ahead with its transformation from a traditional TV company into an integrated entertainment and commerce corporation and diversifying its revenue profile. To this end, we are expanding our portfolio starting with TV, the medium with the broadest reach, and delivering entertainment and information at any time and place with our digital offerings. At the same time, ProSiebenSat.1 is using its media power to extend its value chain: We are investing in internet portals with a focus on end consumers that are suitable for marketing via the broad-reach medium of television. ProSiebenSat.1 is the first media corporation to implement the combination of TV and digital offerings and to consistently leverage the resulting synergies.

Our vision is to transform ProSiebenSat.1 into a leading omnichannel entertainment and commerce brand powerhouse with a global presence in the years to come. With everything we do, we want to delight, inspire and support those who use our offers — and offer our advertising customers unique added value. Attractive programming is one of the most important requirements for this.

In order to secure a long-term supply of programming for the Group, the Group maintains close dialog with domestic and international film studios, as well as film and TV producers. ProSiebenSat.1 Group has multi-year agreements with nearly all major Hollywood studios as well as numerous film companies. When purchasing products and services, we attach importance to obtaining market conditions, meeting quality requirements and delivery times, and adhering to ethical and ecological standards. [G4-12]

Dimensions of sustainability and action areas of ProSiebenSat.1

Dimensions of sustainability and action areas of ProSiebenSat.1 (Graphic)Dimensions of sustainability and action areas of ProSiebenSat.1 (Graphic)

Companies that identify sustainability-related risks and opportunities at an early stage can hold their own on competitive markets. In this context, we define sustainable corporate activity as a holistic approach to secure the economic as well as the ecological and social performance of our Group.

In September 2016, ProSiebenSat.1 Group published a separate report for the first time dealing with these three dimensions of sustainability and taking the key aspects of sustainability into account. It was titled “Our Responsibility — Public Value and Sustainability at ProSiebenSat.1 2015/2016”. Since the report was published, we have further enhanced our sustainability management and the reporting processes in the Group and increased the transparency of our sustainability performance. We have therefore defined concrete measures that we have already implemented or will implement in the second half of 2017. For example, we have systematically expanded the content of this report and broadened the scope of the review to include additional selected non-financial aspects. In parallel, the Group is working on enhancing the sustainability organization and the corresponding governance structures in the Group.

In various sustainability rankings, ProSiebenSat.1’s activities are independently evaluated as follows:

  • CDP: In October 2016, ProSiebenSat.1 Group was awarded the “Best Improvement Award Germany (non public)” in the “CDP Climate Score” category. The Company was allocated to performance band C.
  • Sustainability Intelligence: In 2016, ProSiebenSat.1 was scrutinized by Sustainability Intelligence in a comprehensive sustainability evaluation for the first time and achieved a rating of D+ on a scale from A to G.