2. 5 business segments
Free-TV Pay-TV Free-TV Pay-TV Other
Scandinavia Nordic Emerging Markets Emerging Markets Businesses
• 9 Free-TV channels • 4 satellite platforms • 19 channels • 5 satellite platforms – • Radio
• Virtual operator in 3 rd Baltics, Ukraine & Russia • Content production
party networks • 19 channels on 3 rd party
Sweden Estonia networks
Norway Latvia
Lithuania
Denmark
Bulgaria¹
Czech
Hungary
Introduction
Ghana
3. Spanning 4 continents
28 free-TV channels in 10 countries
Introduction
Satellite pay-TV platforms in 9 countries
3 Over 66 million mini-pay subscriptions in 34 countries
4. MTG = Made To Grow
Revenues & EBIT
Return on capital employed
SEK million
16,000 30%
14,000 27% 34%
24% 31%
12,000 29% 29%
21% 25%
10,000 18% 21% 21%
8,000 15%
12% 15% 15%
6,000
9%
4,000
6% 6%
2,000 3%
0 0%
Revenues EBIT EBIT-margin
Introduction
4
Total EBIT excluding discontinued operations and one-offs; ROIC excluding non-recurring items.
5. With a balanced revenue mix
Segmental revenue mix 2011 revenue mix
100%
80% 9%
60% 44%
47%
40%
20%
0%
2006 2007 2008 2009 2010 2011
Free-TV Scandinavia Pay-TV Nordic
Emerging Markets Advertising Subscription B2B / B2C
• Balanced revenue mix of cyclical advertising sales & linear subscription sales
• Unparalleled efficiency due to control of content, packaging, pricing & distribution
Introduction
5
6. Content remains King
MTG TV channels broadcast 472,372 hours of entertainment in 2011
= 20,000 days of programming!
Hours broadcast
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
MTG RTL SBS Bonnier CME Mediaset
Introduction
6
7. With multiple windows
Channel
Pay-TV Free-TV SVOD Co-finance
Distribution
*
Introduction
7
8. And the industry is changing fast
From physical… to digital… to streaming in the ‘cloud’
Video
Online movie viewership set to
more than double in 2012, whilst
physical viewing predicted to
remain stable
Music
Digital music sales accounted
for >50% of total worldwide
music sales in 2011
Print
Amazon sold more Kindle books
than paperback books in 2011
Introduction
8
8
Source: Screen Digest
10. More channels available
From onechannel in 1987 to over 50 in 2012
SWEDEN DENMARK NORWAY
Free-TV Scandinavia
Competing for 162 Competing for 198 Competing for 166
10 viewing minutes per day viewing minutes per day viewing minutes per day
11. People watching more TV
Average Viewing Time per Day (minutes)
200 + 50 minutes
190
180
170 + 21 minutes
+ 5 minutes
160
150
140
Free-TV Scandinavia
130
2007 2011
11
12. Increasing TV’s ad market share
Sweden Denmark Norway
20.0% 17.2% 19.5%
2008
22.1% 19.2% 20.9%
2011
Free-TV Scandinavia
12
13. And driving demand levels
Market Sold Out Ratios in prime time Market cost per thousand (indexed)
100% 120
110
95%
100
90%
90
85%
80
80%
70
75% 60
Free-TV Scandinavia
2008 2009 2010 2011 2008 2009 2010 2011
13
Source: MTG research
15. By building the media house
Complementary Channel Profiles Average Weekly Reach (15-49)
80% -2% +19% +8%
Old & Male Old & Female
70%
60%
50%
40%
30%
20%
10%
Young & Male Young & Female
0%
Bonnier MTG SBS
Free-TV Scandinavia
Source: MMS 2003 2011
15
Source: MMS
16. With more to come
Regional share of total advertising Total regional advertising (SEK 15 bn)
(NOK / DKK / SEK billion)
15 Print, 63% Direct
advertising,
14%
10
5
Internet,
14%
0 Radio, 4%
TV, 5%
40% 60% 50% Regional TV advertising (SEK 860 mn)
• Number of regional TV3 Sweden broadcast zones
increased from 6 to 19 on February 27th 2012
MTG,
• Bundled TV, Radio & Internet Ad sales package with 9%
dedicated sales force of 120 people as of March 2012 TV4,
Free-TV Scandinavia
• Local Ad prices as much as 2.13x national prices 84% Other,
7%
• Local TV ad market up 22% y/y in 2011, compared to
2.5% y/y growth for total local ad market
16
Source: IRM Media, Regional market report,2012 & MTG estimates
17. Best in class growth & margin
SEK thousands
4,600,000 30%
4,400,000
28%
4,200,000
4,000,000
26%
25.9%
3,800,000
24.5% 24%
3,600,000
3,400,000
22%
3,200,000 21.9%
21.2%
3,000,000 20%
Free-TV Scandinavia
2008 2009 2010 2011
Total revenue Operating margin
17
18. A clear market opportunity
150
• GDP growth + Total ad market growth +
TV ad market growth 140
• + audience share gains 130
• + channel launches 120
• + penetration gains 110
• + AVOD 100
• + mini-pay 90
80
2008 2009 2010 2011 2012 2013 2014 2015
= long term sustained market
outperformance
150 150
140 140
130 130
120 120
110 110
Free-TV Scandinavia
100 100
90 90
80 80
2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015
18D
GDP Growth Total Ad Market Growth TV Ad Market Growth
20. Well-positioned
Lithuani Czech
Estonia Latvia Bulgaria Hungary Ghana Russia
a Republic
Position #1 #1 #1 #2 #2 #3 - #4
Combined
commercial
42.0% 37.2 44.0% 27.7% 28.1% 8.1% 18.8% 16.1%
audience share
(15-49) (15-49) (15-49) (15-54) (18-49) (18-49) (15-49) (6-54)
(target
demographic)
Catch-up services Yes Yes Yes Yes Yes No No Yes
Free-TV Emerging Markets
Sold on ’bundled’
Yes Yes Yes Yes Yes Yes N/A N/A
basis
20
21. With scale operations in key
markets
Commercial Audience Share Financial performance (SEK million)
(Baltics, Czech Republic & Bulgaria)
50% 2,000 30%
25%
40% 1,600
20%
30% 1,200 15%
800 10%
20%
5%
10% 400
0%
0% 0 -5%
2006 2007 2008 2009 2010 2011 2008 2009 2010 2011
Czech Republic (15-54)
Revenue EBIT EBIT margin
Bulgaria (18-49)
Pan-Baltic (15-49)
Free-TV Emerging Markets
• Clear market leadership in Baltics with >43% pan-Baltic target group share of viewing as
advertising spending returned to growth in 2011
• Investments in schedule & new Prima Love channel boosted target audience share in Czech
Republic & enabled advertising market share gains in low growth environment in 2011
• Stable combined audience share in Bulgaria but no recovery in advertising spending in 2011
21
22. And equivalent consumer pricing
Shopping list Shopping list
BGN EUR
Salami 4.79 Salami 3.48
Frozen fish 10.43 Frozen fish 8.55
Coffee 11.82 Coffee 5.34
Chocolate 4.14 Chocolate 2.24
Vodka 23.99 Difference: Vodka 8.91
Shower Gel 2.75 -6.4% Shower Gel 1.39
Detergent 8.46 Detergent 2.8
Powder 15.59 Powder 11.89
81.97 BGN = 41.9 EUR 44.6 EUR
Free-TV Emerging Markets
Bulgaria Germany
22
Source: METRO Cash & Carry monthly catalogues
23. But lower contact cost
CPT dynamics (2011)
Free-TV Emerging Markets
23
Source: MTG research
24. And media spend per capita
TV Ad spend per capita (SEK’000, 2011)
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Free-TV Emerging Markets
24
Source: IMF, Zenith Optimedia 2012
25. So the opportunity is clear
GDP growth in MTG EM territories Forecast GDP growth in MTG CEE
(indexed) territories
600 5.0%
500
4.0%
400
3.0%
300
2.0%
200
100 1.0%
0 0.0%
Estonia Latvia Lithuania
GDP TV Ad Market MTG Sales Bulgaria Czech Hungary
Free-TV Emerging Markets
TV Ad market has outperformed Nominal GDP development
by a factor of 1.28
20 Source: IMF, TNS/MTG estimates
31. Entertainment at your command
First to Market with Full Service
‘Over-The-Top’ Solution Mobile
Set -Top Box
• Anytime
Access all services ‘on demand’
• Anywhere Tablet Media
Players
Access subscription online
PC/Mac
• Any Device
Enjoy subscription on multiple
devices in and out of home
Game consoles
Embedded
TV Set
Applications OTT Set-Top box
Pay-TV Nordic
31
32. Opens up a whole new universe
Satellite Virtual Operator OTT
~1.6 million ~4.2 million ~9.0 million
90% of Swedish households have over 2 MB/s broadband
Pay-TV Nordic
connection speeds
32
38. Establishing leading positions
Share of viewing – Free TV and Viasat Top 10 pay-TV channels in Russia
channels (Russia, 25-44*) (monthly reach, million people)
16
13.1
TV 1000 Russian Kino 21.2
11.3
10.7
10.6
12 TV 1000 20.6
9.5
Discovery Channel 19.4
8 Animal Planet 17.9
5.5
Moya Planeta 15.5
3.8
2.8
2.7
4
2.4
2.0
Eurosport
1.9
1.9
1.9
14.1
1.3
National Geographic 13.2
0
Viasat History 12.2
Sony Entertainment TV 11.9
Dom Kino 11.0
Pay-TV Emerging Markets
0 10 20 30
38
Source: TNS Russia 2012, Screen Digest 2012 * Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:00
39. To grow with the flow
Revenue split Total segment revenue & EBIT
2011 (SEK million)
1000
900
800
700
600
44% 500
400
56% 300
200
100
0
2007 2008 2009 2010 2011
Pay-TV Emerging Markets
Satellite Channels Revenue EBIT
39
Source: MTG Data
41. Cash is king
Net operating cash flow Dividends received from CTC Media
(SEKm) (SEKm)
2,500 100% 140
120
2,000 80%
100
1,500 60% 80
60
1,000 40%
40
500 20%
20
0 0% 0
Net operating cash flow
% of EBITDA converted
Capital allocation
41
42. Enables deleveraging
Net Debt Available Liquid Funds
(SEKm) (SEKm)
5,000 6,000
4,000 5,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0 0
Capital allocation
42
43. And shareholder returns
• Primary focus is on growth and reinvesting cash flow into operations + M&A
• Balanced with TSR commitment – reflected in newly adopted policy to distribute at
least 30% of recurring net profit as annual ordinary dividend
Cash distribution
(SEK)
40.00
Buybacks (value per share)
35.00
CDON spin-off
30.00
Extraordinary dividend per
25.00
share
20.00 Ordinary dividend per share
15.00 Net cash flow per share
10.00 EPS adj (excluding one-offs)
5.00
30% of EPS adj (excluding one-
Capital allocation
0.00 offs)
2006 2007 2008 2009 2010 2011
43
44. For Further Information, please visit www.mtg.se or contact:
MTG Investor Relations
Tel: +46 736 99 29 81/ +44 759 009 8188
Email: investor.relations@mtg.se
Nasdaq OMX: ‘MTGA’, ‘MTGB’
Contact information
44