3. First Quarter 2012
Record Q1 sales in an Investment Quarter
• Sales up 4% y/y at constant & reported FX to SEK mn
SEK 3,259 (3,125) mn
3,500 40%
3,259
3,125
• OPEX up 8% y/y at constant & reported FX to 35%
3,000
SEK 2,919 (2,693) mn
30%
2,500
• EBIT before associated company income of 25%
SEK 341 (432) mn 2,000
• Total EBIT of SEK 542 (686) mn, including 20%
SEK 201 (254) mn of associated company 1,500
income 15%
1,000
10%
• PTP of SEK 591 (671) mn
432
500 341 5%
• Net income of SEK 454 (490) mn
0 0%
Q1 2011 Q1 2012
• Basic EPS of SEK 6.68 (7.35) Revenue EBIT* EBIT margin
Q1 2012 RESULTS
* EBIT excluding associated income
• Receipt of SEK 52 (61) mn of dividends from
CTC Media
3
5. Free-TV Scandinavia
Financial Highlights
SEK mn
• Sales of SEK 1,024 (1,023) mn
1,200 50%
• Down 1% y/y in Q1 at constant FX
1,023 1,024 45%
1,000
• OPEX up 14% y/y to SEK 866 (763) mn in Q1 40%
• Up slightly less at constant FX 35%
800
• Focused programming investments in each 30%
Scandinavian country & low OPEX growth
in Q1 600 25%
20%
• EBIT down to SEK 158 (260) mn in Q1 400
15%
260
• EBIT margin of 15%(25%)
10%
200 158
5%
0 0%
Q1 2011 Q1 2012
Revenue EBIT EBIT margin
Operating review
5
6. Free-TV Scandinavia
Operating Highlights
Commercial Audience Share (15-49)
Sweden 50%
• Target audience share of 34.9% (33.8%) in Q1
45%
• TV3 grew target CSOV both y/y and q/q
• TV8 & TV10 up both y/y and q/q 40%
• Ongong overall work to enhance 35%
programming schedules
30%
• TV3 launched in 19 regions on 27 February
25%
Norway
• Target audience share of 18.6% (22.0%) 20%
• CSOV affected by increased competition & 15%
performance of own productions
10%
• Focus on improving both TV3 & Viasat4 &
changes in key personnel 5%
Denmark 0%
• Target audience share of 24.9% (25.4%)
• Q/Q development reflected improved
ratings for local productions & sports events
Sweden Norway Denmark
in Spring schedules
Operating review
• TV3 CSOV up y/y and q/q & TV3+ and
TV3 PULS CSOV up q/q
6
7. Pay-TV Nordic
Financial Highlights
SEK mn
• Sales of SEK 1,249 (1,139) mn in Q1
1,400 1,249 50%
1,139
• Up 9% y/y at constant FX
45%
1,200
• OPEX of SEK 1,031 (924) mn in Q1 40%
• Up slightly less at constant FX 1,000 35%
• Ongoing investments in Viaplay; higher y/y 30%
sports content costs & rebranding of Nordic 800
movie channel portfolio 25%
600
20%
• EBIT up 1% y/y to SEK 217 (215) mn in Q1 15%
400
• Operating margin of 17% (19%)
215 217 10%
200
5%
0 0%
Q1 2011 Q1 2012
Revenue EBIT EBIT margin
Operating review
7
8. Pay-TV Nordic
Operating Highlights
Premium subscribers
• Premium subscriber base down by 19,000
subscribers net q/q in Q1 1,200
1,000
• Decline in virtual operator subscriber base 800
Thousands
due to ending of contract with Norwegian 600
IPTV operator in January & restatement of 400
subscriber base of another Norwegian 200
operator 0
• Underlying third party subscriber base grew
in Q1 in line with expectations
Satellite subscribers 3'rd party network subscribers
• Premium ARPU up 9% y/y in Q1 to SEK 4,866
(4,445) & from SEK 4,791 in Q4 11
Value added services
• Continued growth in penetration of value 350
added services 300
Thousands
• Continued y/y growth in third party network 250
subscriber base 200
150
100
Operating review
50
8
ViasatPlus HDTV Multi-room
9. Free-TV Emerging Markets
Financial Highlights
SEK mn Free-TV Emerging Markets
• Total sales os SEK 432 (420) mn in Q1 550
432
• Up 5% y/y at constant FX 450 420
• OPEX down 6% y/Y in Q1 350
• Down less y/y at constant FX 250
• Total EBIT up 39 mn y/y to SEK 8 (-31) mn 150
• Q1 EBIT margin of 2% 8
50 -31
-50
Q1 2011 Q1 2012
• Baltic, Czech & Bulgarian sales of SEK 393
(371) mn in Q1 Revenue EBIT
• Up 8% y/y at constant exchange rates Baltics, Czech Republic & Bulgaria
SEK mn
• Combined OPEX down 2% y/y in Q1 475
425 393
• Stable y/y at constant FX 371
375
325
• EBIT margin of 7% in Q1 275
225
175
125
75 27
25 -3
-25
Q1 2011 Q1 2012
9
Revenue EBIT
10. Free-TV Emerging Markets
Operating Highlights
Baltics Commercial Audience Share
• Sales up 2% y/y in Q1 at constant FX 50%
• Increased pan-Baltic commercial target audience 45%
share of 40.5% (39.9%)
40%
• Increased combined TV ad market shares in each
of the Baltic countries in Q1 35%
Czech Republic 30%
• Sales up 16% y/y in Q1 at constant FX 25%
• Continued significant y/y audience & advertising 20%
market shares following continued investments in
15%
programming schedules
Bulgaria 10%
• Sales down 5% y/y at constant exchange rates in
Q1
• Decline continued to reflect overall Estonia (15-49) Latvia (15-49)
weakness in the TV ad market & lower y/y Lithuania (15-49) Czech Republic (15-54)
pricing levels Bulgaria (18-49)
• Combined CSOV up both y/y and q/q
Operating review
10
11. Pay-TV Emerging Markets
Financial Highlights
SEK mn
• Sales of SEK 251 (215) mn in Q1
300 50%
• Up 14% y/y at constant FX
• Continued y/y subscriber intake in Ukraine, 45%
Russia & Baltics 251
250
40%
• Continued strong mini-pay growth
215
35%
200
• OPEX up 5% y/y to SEK 217 (207) mn in Q1 30%
• Up less at constant FX
150 25%
• Ongoing investments in the satellite
platforms 20%
100
15%
• EBIT more than tripled to SEK 34 (7) mn in Q1
• Increased EBIT margin of 14% (3%) 50
10%
34
5%
7
0 0%
Q1 2011 Q1 2012
Revenue EBIT EBIT margin
Operating review
11
12. Pay-TV Emerging Markets
Operating Highlights
Satellite subscribers
600
• 91,000 net new subscribers added y/y
• Subscriber base down net q/q due to 500
seasonal impact of high growth in Q1&
Thousands
400
lower gross additions and increased
300
churn in Q1
200
• Wholesale mini-pay business subscriptions up 100
13% y/y to 66,012 million & up 3% q/q 0
80,000
Mini-pay TV subscriptions
70,000
Thousands
60,000
50,000
Operating review
40,000
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
12
Mini-pay TV subscriptions
13. Other Businesses
Highlights
SEK mn
• Comprises MTG’s Radio, Bet24 and Modern
Studios operations 450
400 407
• Sales of SEK 407 (400) mn in Q1 400
• Up 1% y/y at constant FX
350
• Sales growth for Modern Studios
300
• Lower y/y sales for Radio operations &
Bet24 250
• Combined OPEX up 11% y/y to SEK 421 (380) 200
mn in Q1
• Investments in Modern Studios & 150
Norwegian radio operations 100
• Combined EBIT losses of SEK -14 (20) mn in Q1
50
• Agreement signed with Unibet to sell Bet24 20 -14
operations 0
• Total cash consideration of approximately -50 Q1 2011 Q1 2012
EUR 13.5 mn
Revenue EBIT
• Subject to regulatory approval & expected
Operating review
completion before end of Q2 2012
13
15. Income Statement
• Depreciation & amortisation charges Q1 Q1
of SEK 28 (49) in Q1 (SEK mn) 2012 2011
Net sales 3,259 3,125
• Net interest charges up y/y to EBIT before associated company
341 432
SEK -16 (-14) mn in Q1 income
Associated company income 201 254
• Y/Y change in other financial items EBIT 542 686
in included
Net interest & other financial items 49 -15
• SEK 81 (4) mn of non-cash
financial gain from the change Income before tax 591 671
in value of the option element
of the SEK 250 mn CDON Net income 454 490
Group convertible bond Basic EPS from continuing operations 6.68 7.35
Total basic EPS 6.66 7.29
Financial Review
15
16. Cash Flow
• Cash flow from operations included Q1 Q1
(SEK mn) 2012 2011
receipt of SEK 52 (61) mn of dividend
payments from CTC Media in Q1
Cash flow from operations 334 462
• Sale of MTG’s remaining shares in Metro Changes in working capital -269 -339
International S.A. to Investment AB
Kinnevik in Q1 for SEK 24 mn in cash
Net cash flow from operations 65 123
• CAPEX of SEK 23 (32) mn in Q1
Cash flow used in investing
= less than 1% of Group net sales 1 -32
activities
Cash flow used in financing
54 -189
activities
Net change in cash & cash
120 -98
equivalents
Financial Review
16
17. Financial Position
• Group total borrowing of SEK 1,603 (2,446) mn 31 Mar 31 Mar
as at 31 Mar 2012, compared to SEK 1,566 mn (SEK mn) 2012 2011
as at 31 Dec 11
Non-current assets 5,683 8,566
• Net debt of SEK 733 (1,863) mn as at 31 Mar
Current assets 5,785 5,339
12, compared to SEK 797 mn as at 31 Dec 11
Total assets 11,468 13,905
• SEK 1,869 (1,766) mn book value of 38.1%
shareholding in CTC Media had public equity
value of SEK 4,619 mn as at 31 Mar 12
Shareholders’ equity 4,744 6,538
Long-term liabilities 2,220 3,054
Net debt / EBITDA
1.2 1.2 1.1 Current liabilities 4,504 4,313
0.8 0.7 0.7
0.6
0.3 0.3 Total equity & liabilities 11,468 13,905
Financial Review
17
18. Summary
• Record sales for a first quarter but lower profits due to peak cost increases in an
investment quarter for the Nordic operations
• Earlier and higher investments in Scandinavian free-TV Schedules & investments
in pay-TV content offering & new technologies
• Audience share gains in all but one Emerging free-TV territory & continued
subscriber intake for Emerging Markets pay-TV businesses
• Sales growth & improved profitability for both Free-TV and Pay-TV Emerging
Markets
• Focus on growth & sustainable long term value creation
• Strong balance sheet with increased dividend proposed to AGM & newly adopted
dividend policy
Summary
18
19. For further information, please visit www.mtg.se or contact:
MTG Investor Relations
Tel: +44 7768 440 414 / +44 7590 098 188
Email: investor.relations@mtg.se
Contact information
19