Overall Assessment of the Opportunity and Risk Situation — Management View

The Group is market leader in the German TV market, is successfully exploiting its extensive reach as an investment currency and is augmenting its value chain to increase value in all segments with digital offerings. Our digital business developed dynamically and profitably in 2015; its revenue contribution is set to increase by EUR 1.2 billion by 2018. At the same time, we grow solidly in the free TV business and expect revenues in the Broadcasting German-speaking segment to increase by EUR 375 million in the mid-term. Thus, the company features a broad revenue base.

ProSiebenSat.1 pursues a dual strategy and is benefiting from the increasing number of digital devices. However, the media industry is subject to constant market change and, not least as a result of global digitalization, intense competition. Therefore, the identification and management of potential opportunities is just as important for our Group as the recognition and controlling of potential risks.

ProSiebenSat.1 Group has effective control systems to deal with risks early and consistently. We estimate that there are no risks for either year covered by the forecast that, individually or in combination with other risks, could have a material or lasting adverse effect on the earnings, financial position and performance. The identified risks pose no threat to the Company as a going concern, even looking into the future. As of the date of the preparation of this report, therefore, the Executive Board still considers the overall risk situation as limited and manageable. There has been no fundamental change in the overall risk situation compared with December 31, 2014; we still rate the majority of the issues presented in the latest Annual Report as low risk. The overall opportunity situation has not changed either.