MTG operates across four continents with businesses in free-to-air TV, pay-TV, radio, and online video. It has a balanced revenue mix between advertising and subscription sales. While TV viewing is moving online, MTG is well-positioned to capture this new audience through offerings like TV Play. MTG also has leading market positions across its emerging market territories in Europe and opportunities to continue growing ad revenues as TV viewing and spending increases in these regions.
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 3rd Baltics, Ukraine & Russia • Content production
party networks • 19 channels on 3rd party
Sweden Estonia networks
Norway Latvia
Lithuania
Denmark
Bulgaria¹
Czech
Hungary
Ghana
3. Spanning 4 continents
31 free-TV channels in 10 countries
Satellite pay-TV platforms in 9 countries
3 Over 75 million mini-pay subscriptions in 31 countries
4. A track record of profitable
growth
Revenues & EBIT Return on capital employed
SEK million
16,000 30%
14,000 27% 34%
24% 31%
12,000 29% 29%
21%
10,000 25%
18%
21% 21%
8,000 15%
12% 15% 15%
6,000
9%
4,000
6% 6%
2,000 3%
0 0%
Revenues EBIT* Margin
4
Total EBIT excluding discontinued DTV and CDON Group 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
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
6
9. Digitalisation has changed the
landscape forever
Scandinavian TV landscape
(2011)
IPTV
9%
DTT
19%
Scandinavian TV
Norway –
landscape (2005) 1 Dec 2009
Denmark – Cable
1 Nov 2009 Satellite
Sweden – 52%
Cable 55% 19%
1 Feb 2008
Satellite
19%
DTT 7%
Analogue
Terrestrial
20%
9
10. And fragmented the universe
From one channel in 1987 to over 50 in 2012
SWEDEN DENMARK NORWAY
Competing for 162 Competing for 198 Competing for 166
10 viewing minutes per day viewing minutes per day viewing minutes per day
11. BUT increased TV viewing
Average TV Viewing per day With potential to grow
(minutes)
+50 min
200 300
280
190
260
180 240
170 +21 min 220
+5 min 200
160 180
150 160
140
140
120
130 100
2007 2011
Digitalization has increased viewing during last 71% higher viewing in US & 29% higher
4 years viewing in UK when compared to average
• Sweden: +3% (first to enact analogue shutdown) viewing of 175 minutes in Scandinavia 2011
• Denmark: +34%
• Norway: +14%
11
12. And driven TV ad market growth
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
2005 2006 2007 2008 2009 2010 2011 2012E
Sweden Denmark Norway USA UK Europe incl. Russia
12
13. As a % of the total Ad Market
TV Share of Ad Market With potential to grow
25% 50%
+2.1%
+1.4%
20% +2% 40%
15% 30%
10% 20%
5% 10%
0% 0%
2008 2011
TV Share in Scandinavia was growing from 94% higher TV share in US Market
2008 to 2011 45% higher TV share in UK Market
• 2.1% in Sweden compared to average TV share of 21%
• 2% in Denmark in Scandinavia 2011
• 1.4% in Norway
13
14. With rising demand & prices
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
2008 2009 2010 2011 2012 ytd 2008 2009 2010 2011 2012E
14
Source: MTG research
15. The MTG 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
Source: MMS 2003 2011
15
Source: MMS
16. Commercial audience shares
15-49 target group
% Sweden %
Denmark
50 70
45
60
40
35 50
30 40
25
20 30
15 20
10
5 10
0 0
MTG TV4 Group SBS MTG TV2 Group SBS
%
Norway Media house CSOV
60
40 (Q4 to date)
50 33.9 34.7
35
40
30
30
25 23.5 23.8
20.4
20 20 17.3
10 15
0 10
5
0
16 Sweden Denmark Norway
MTG TV2 Group SBS 2011 2012
17. And viewing is moving online &
capturing a new audience
Viewing platform Viewing by Device
Age 15-74
7% 1% 50%
+16%
45%
40%
35%
92%
30%
25%
Age 15-24 +77%
1% 20%
16%
15%
+54%
10%
+278%
5%
83% 0%
Computer Mobile Phone TV-screen Tablet
Screen
Traditional TV Web-TV Mobile-TV Q1 2011 Q1 2012
17
18. Creating new revenue streams
Web TV advertising market
350
300
250
MSEK
200
150
100
50
0
2009 2010 2011 2012e 2013e
Where revenue per viewer and per hour are higher than in traditional linear TV Price = 2.8x
higher online & even higher on mobile
Number of streams on MTG TV Play services
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
-
18
2010 2011 2012 2013
19. Online viewing shares
1,400,000
1,200,000
1,000,000
Consumed AVOD hours
800,000
600,000
400,000
200,000
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39
SVT SBS MTG TV4
2012, Weeks
MTG has outperformed other commercial media houses and achieved as
high as a 51% commercial share of online viewing
19
20. With higher online share than
linear
Weeks 1-40, 2012
Online share of Linear CSOV
commercial viewing (15-49)
45% 43%
38% 35%
17% 21%
TV4 numbers include TV4 premium viewing & clip sites + peak effect of Big Brother during Spring
20
Source: MMS
21. And the regional opportunity
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,
• Combined TV, Radio & Internet Ad sales packages
9%
• Local Ad prices as much as 2.13x national prices TV4,
84% Other,
• Local TV ad market up 22% y/y in 2011, compared to 7%
2.5% y/y growth for total local ad market
21
Source: IRM Media, Regional market report,2012 & MTG estimates
22. Where TV is again taking
ad market share
Swedish regional advertising development
80% +77.5%
+68.6%
60%
40%
20%
+6.8%
-12.4% -13.3%
0%
-20%
Print Television Radio Internet Direct
advertising
22
Source: IRM Media, Regional market report, April 2011
25. A well-positioned portfolio
Czech
Estonia Latvia** Lithuania Bulgaria Hungary Ghana Russia
Republic
Position #1 #1 #1 #2 #2 #3 - #4
Combined
commercial
40.7% 60.6% 40.2% 40.4% 28.4% 8.2% 18.8% 8.7%***
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
Sold on ’bundled’
Yes Yes Yes Yes Yes Yes N/A N/A
basis
* As at Q3 2012
25 * * Including LNT channels from Q3 2012
* * CTC Media channel only
26. With scale operations in key
markets
70% Commercial Audience Share Financial performance (SEK million)
(Baltics, Czech Republic & Bulgaria)
2,000 30%
60%
1,800
25%
50% 1,600
1,400 20%
40%
1,200 15%
30% 1,000
800 10%
20% 600 5%
400
10% 0%
200
0% 0 -5%
2006 2007 2008 2009 2010 2011 2012 Q3 2008 2009 2010 2011 2011 9M 2012 9M
Estonia (15-49) Latvia (15-49)*
Lithuania (15-49) Czech Republic (15-54) Revenue EBIT EBIT margin
Bulgaria (18-49)
• Clear market leadership in Baltics with 47% pan-Baltic target group share of viewing
• Completed acquisition of LNT free-TV group in Latvia in June 2012
• Investments in schedule & new Prima Love channel boosted target audience share in Czech Republic &
enabled advertising market share gains
26 • Higher target audience share in Bulgaria enables market share gains
• Ad markets have stabilised but not returned to sustained growth yet
* Includes the consolidated LNT operations from Q3 2012
27. 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
Bulgaria Germany
27
Source: METRO Cash & Carry monthly catalogues
28. But low contact cost / ad spend
CPT dynamics (2011)
2.0
TV Ad spend per capita (SEK’000, 2011)
1.5
1.0
0.5
0.0
28
Source: MTG research
29. So the opportunity is clear
GDP growth in MTG EM territories Forecast GDP growth in MTG CEE
(indexed) territories
400 5.0%
350
4.0%
300
250 3.0%
200
150 2.0%
100
1.0%
50
0 0.0%
Estonia Latvia Lithuania
GDP TV Ad Market Bulgaria Czech Hungary
TV Ad market has outperformed Nominal GDP development
by a factor of 1.28
20 Source: IMF, TNS/MTG estimates
30. Returning market opportunity
CEE TV ad markets where MTG is present
10
9 SEK 8.6 billion
8
SEK 2.2 billion
7
SEK 6.4 billion
6
5
4
3
2
1
0
2008 2011
30
Sources: Zenith Optimedia 2012/MTG Estimates
34. Technology changes consumer
behaviour
Gatekeeper
Virtual Operator
Owned & Operated Viasat Channels in Independent
in 3rd Party
Satellite Platform 3rd Party Networks Internet
Networks
Environment
34
35. Via…sat…ellite
Premium satellite subscribers (000’s) Premium satellite ARPU (SEK)
800 6,000
700 5,000
600
4,000
500
400 3,000
300 2,000
200
1,000
100
0 0
2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Q3 Q3
Value-added services (000’s)
• Premium satellite ARPU growth reflects price
400
increases & penetration of VAS
350
300 • Increased competition in Denmark & change
250 in subscriber mix in Norway negatively
200 affecting premium satellite subscriber base
150
• Continued focus on offering – launch of new
100
50
HD & catch-up channels / rebranding of Viasat
0
Film – to moderate satellite subscriber
dec-07 dec-08 dec-09 dec-10 dec-11 9M 2012 decline & drive ARPU growth
35 Multi-room PVR HD
36. Content leadership
HD channels
• 11 new HD channels & 4 catch-up channels to be launched in Q4,
following launch of 4 HD channels & 5 catch-up channels in Q1 &
rebranding to Viasat Film
36
38. 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
38
39. Taking further steps
Launch of Viaplay Box
• Viaplay streaming box
• Viaplay to your TV
• 25 linear channels
• DTT connection
• Full-blown media center
* * * *
*
39
39
* Available via terrestrial signal
40. 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
connection speeds
40
41. Content Leadership
TV & Movies
1’st
Pay International titles
Local titles
2’nd
Pay
43. Future sales growth to be driven
by current investments
(SEK million)
5,000 50%
4,500 45%
4,000 40%
3,500 35%
3,000 30%
2,500 25%
2,000 20%
1,500 15%
1,000 10%
500 5%
0 0%
2006 2007 2008 2009 2010 2011 2011 9M 2012 9M
Revenue EBIT EBIT margin
• Increasing investments in Nordic pay-TV content, premium channels and Viaplay online pay-TV service currently
expected to result in Nordic pay-TV EBIT margin of approximately 15% in Q4 2012 and 10-12% for full year 2013.
The total Nordic premium pay-TV subscriber base (excluding Viaplay) is currently expected to continue to decline
in Q4 2012 and for the full year 2013 due to the ongoing decline in the DTH subscriber base and lower than
anticipated growth in the third party network subscriber base, and result in stable quarter on quarter total Nordic
pay-TV sales in Q4 2012 and stable year on year sales for the full year 2013. The fast growing Viaplay online pay-
TV service is expected to continue to grow its subscribers and revenues throughout this period
43
47. Eastern Europe
Growth drivers
Pay-TV penetration Relative TV market size
Eastern Europe (%) (USD million)
80%
60% Russia
40%
1,211
20%
0% 4,458
Cable DTH (pay) IPTV TV advertising market Pay TV market
Eastern Europe Western Europe
Share of total pay-TV revenues
40%
29% 29%
30%
21%
20%
7,296
9,414 31,361
10% 5% 3% 5% 5% 38,838
1% 0% 2%
0%
Russia Ukraine Poland Sweden Western
Europe
TV advertising market Pay TV market
47
On-demand revenue Premium pay revenue
Source: Screen Digest 2012
49. 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
Eurosport
2.0
14.1
1.9
1.9
1.9
1.3
National Geographic 13.2
0
Viasat History 12.2
Sony Entertainment TV 11.9
Dom Kino 11.0
0 10 20 30
49 * Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:00
Source: TNS Russia 2012, Screen Digest 2012
50. New HD Channels Launched
Russia, Ukraine, the CIS & Baltics
• All 3 channels available in Russia,
Ukraine & CIS
• TV1000 Premium HD – Premium tier movie
channel with focus on first run premieres of
award winning films from Hollywood studios and
independent local distributors
• TV1000 Megahit HD – Premium movie channel
featuring first run premieres of the latest
blockbuster titles from Hollywood and Russia
• TV1000 Comedy HD – dedicated to US
comedy movies
Content from major Hollywood studios
50
51. Launch of UA.TV
Utilizing growth opportunities
Pay-TV market penetration TV market structure
(%) (2011)
35%
30%
25% Cable
20%
39% DTH (pay)
15%
10% 58% IPTV
5%
DTH (freeview)
0%
1% 2%
Cable DTH IPTV
• Substantial market opportunity – Europe’s 6th largest country by population
• Pay-TV penetration in 2011 is still low, at close to 19.5% of TV HHs
• Addressable market for DTH – 15.4 million non-cable HHs
51
52. Investing in growth
Revenue split Total segment revenue & EBIT
2011 1,000 (SEK million) 50%
900 45%
800 40%
700 35%
600 30%
44% 500 25%
400 20%
56% 300 15%
200 10%
100 5%
0 0%
2006 2007 2008 2009 2010 2011 2011 2012
9M 9M
Satellite Channels Revenue EBIT
• Increasing investments in Russian and Ukrainian pay-TV content, HD channels and pre-paid satellite service in
Ukraine currently expected to boost Emerging Markets pay-TV revenue growth levels and result in segment
operating losses of less than SEK 20 million in Q4 2012 and less than SEK 50 million for full year 2013
52
56. With complementary M&A
Transactions to date
2000: Acquisition of 95% of Hungarian operation
2001: Acquisition of 75% of DTV in Russia
2002: Acquisition of 36% of CTC Media in Russia
2005: Acquisition of 50% of Prima TV in Czech Republic
2006: Acquisition of 100% of Slovenian operation
2007: Acquisition of 50% of Diema channels in Bulgaria
2008: Divestment of 100% of DTV to CTC in Russia
2008: Acquisition of 50% of satellite pay-TV platform in Ukraine
2008: Acquisition of 100% of Nova TV in Bulgaria
2010: Acquisition of 50% of satellite pay-TV platform in Russia
2010: Acquisition of additional 35% of Viasat Ukraine
2011: Distribution of 100% of CDON Group to MTG shareholders
2012: Divestment of 100% of Bet24.com
2012: Acquisition of 100% of LNT in Latvia
2012: Acquisition of 53% of Paprika Latino in CEE
2012: Acquisition of 80% of Zitius in Sweden
2012: Announced acquisition of 50% of TV 2 Sport in Denmark
(closing subject to regulatory approval)
56
57. 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-
0.00 offs)
2006 2007 2008 2009 2010 2011
57
58. For Further Information, please visit www.mtg.se or contact:
MTG Investor Relations
Email: investor.relations@mtg.se
Nasdaq OMX: ‘MTGA’, ‘MTGB’
58