Mikael Olander, CEO CDON Group. MTG Capital Markets Day 2010

1. 2010 Capital Markets Day
Mikael Olander, CEO CDON Group
Internet Retailing
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 1

2. Where do you put your money?
Indexed growth
performance
2003–2009
Swedish retail sector
Swedish internet retail
CDON Group
Source: Handelns Utredningsinstitut HUI
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 2

3. Background
Segments and brands
Entertainment Fashion Health &Sports
CDON.COM NELLY.COM GYMGROSSISTEN.COM
BOOKPLUS.FI LINUSLOTTA.COM BODYSTORE.COM
LEKMER.SE
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 3

4. Background
Positioned in the largest segments
What is bought online?
1. Clothes/shoes 46 %
2. Home electronics 39 %
3. Movies and music 25 %
4. Books 24 %
5. Home decoration 9%
6. Sports- and leisure 5%
7. Cosmetics and hair-care 4%
Source: Posten Norden 2010
8. Food 4%
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 4

5. Background
Competitive position
Cdon.com
Cdon.com is the Nordic online market leader on DVD’s,
games, CD’s and entertainment. Primary target group is
men/women 18-45. Main online competitors are Ginza.se,
Webhallen.se, Adlibris.se and Coolshop.dk
Nelly.com
Nelly is the Nordic online market leader on fashion in the
target group women 18-35. Main online competitors are
Bubbleroom.se, and Asos.com
Gymgrossisten.com
Gymgrossisten is the Nordic market leader, on- and off-line, in
sports nutrition. Primary target group is men 18-35 that work-
out +4 times/week
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 5

6. Background
Tripled sales in four years
Starting in 1999 with Cdon.com selling CD’s in the Scandinavian countries
the last decade has been characterized by significant organic growth, launch
of new product lines, geographic expansion and e-commerce acquisitions.
Maximizing sales on each site
Aggressively expanding assortment and adding new product groups
Pan-Nordic rollout utilizing the Internet Retailing setup
Cdon.com and Nelly.com are Pan-Nordic today
Expanding the product portfolio through acquisitions
Bought three companies in 2007, one in 2008 and one in 2010
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 6

7. Background
Timeline – key events
2009
2007
Integration of BookPlus.fi in
Acquisition of Nelly.com
CDON.com, expansion of
Acquisition of LinusLotta.com
Fashion’s and Health &
Acquisition of BookPlus.fi
Sports’ private label offerings
1999
Founding of CDON.com as an
2005 2007
online record store within MTG in 2010
Mobile phones and consumer Mp3 bookstore
Sweden, Norway and Denmark Acquisition of Lekmer.se
electronics store launched launched
1999 2000 2003 2004 2005 2006 2007 2008 2009 2010
2000 2003 2006 2008
New stores for DVD movies Swedish bookstore Digital movie-rental store Downloadable PC games store, merchandise
and computer games launched (VoD) added store and Norwegian bookstore launched
launched as well as launch in
Finland 2004 2008
CDON.com is first to launch a Gymgrossisten.com and Bodystore.com
Nordic online digital music store acquired and rolled out in Norway
2008
Pan Nordic roll-out of Nelly.com
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 7

8. Background
Sales and EBIT development (TSEK)
2,000,000 200,000
+36 %
1,800,000 180,000
1,600,000 160,000
1,400,000 +41 % 140,000
1,200,000 120,000 Health & Sports
+23 %
1,000,000 100,000 Fashion
+25 %
800,000 80,000 Entertainment
EBIT
600,000 60,000
400,000 40,000
200,000 20,000
0 0
2005 2006 2007 2008 2009
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 8

9. Background
Sales by segment and market
76 12
Entertainment
Fashion
Sales 2009: SEK 1,337m Sales 2009: SEK 203m
Growth: 26 % Growth: 157 %
EBIT 2009: SEK 93m EBIT 2009: SEK 6m
15
24
52 Finland
Health & Sports
12
Norway
Sweden
Sales 2009: SEK 213m 9
Share of CDON
Growth: 47 % % Group sales
EBIT 2009: SEK 26m
Denmark
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 9

10. Business model
Growth platform
Get big fast
Customer
Synergies of scale leads to a benefits
positive sales spiral increasing Lower
our competitive advantage costs
building barriers of entry Larger
volumes
All segments within Cdon Group Customer
benefits
shall have potential to reach
Lower costs
market leading positions and
Larger
correspond to the entertainment
volumes
segment in revenues. Customer
benefits
Lower costs
Larger volumes
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 10

11. Business model
Scale impact on cost structure
CDON Group cost drivers
Variable costs
72 % Cost of goods sold
13 % Direct selling costs (postage, fulfilment, bank&cc 85 %
and bad debt)
6% Marketing & IT
Fixed costs
8% Organisational (salaries, rent, admin) 15 %
1% Other opex
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 11

12. Business model
Focus areas
Ny bild
Unique reach
Nordic brand awareness
Three focus areas that sets us apart from our competition
General share of all 18-47
are our: year old that know either
brand, ranging from ’heard
• Mass marketing through Internet and TV advertising,
of’ to ’know very well’
driving sales and building brand awareness. MTG’s
channels are our preferred choice but also working
with TV4, Pro7 and WSOY media group (Finland) Cdon.com 95 %
• Huge cross sale and CRM potential in two million Nelly.com 64 %
active customers Gymgrossisten 46 %
• Best in class in-house SEO/SEM competence
YouGov, Oct 2009
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 12

13. Business model
Strategy
Aggressively grow existing brands
Grow existing brands by concept development and product range expansion
Example:
Private label collection
Launched 2008. It now
constitute approximately
20 % of total sales
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 13

14. Business model
Strategy
Geographical roll-out
Grow existing brands by geographic roll-out
Example:
Lekmer to
launch
Pan-
Nordic in
Q4, 2010
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 14

15. Business model
Strategy
Acquire new brands
Continued growth through CDON Group growth vehicle, utilizing existing
infrastructure, through acquisitions and inhouse start-ups
Example:
Acquired in 2010. Broadening of
assortment in progress, Pan-Nordic
roll-out to be executed this year.
Scale-synergies with IT-platform
migration, postal and payment
agreements, group marketing
etc. initiated
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 15

16. Internet retailing
Large and growing market
Large market
Sources: 1. Swedish Retail Institute HUI, Posten Norden, and Forrester Research
The Nordic online retail market is valued at SEK 61 billion, corresponding to approximately
3,8% of the total retail sales in 2009
Untapped potential
The penetration in more mature markets like the US is more than 50% higher than in the
Nordics1. Posten Norden expects the total Swedish distance retail market to double in the
next five years
Online Retail Penetration 20091
8%
6.0%
6% 4.7%
3.8% 3.7% 3.5% 3.4%
4%
2%
0%
US Denmark Nordic avr. Sweden Norway Finland
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 16

17. Summary
Conclusion
• E-commerce is growing explosively
• Acquisitions are successfully integrated combined
with strong organic growth
• Posting record sales and EBIT in 2009 and Q1, 2010
The most powerful e-commerce company in the
Nordic region is poised for continued fast and
profitable growth!
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 17

18. 2010 Capital Markets Day
Mikael Olander, CEO CDON Group
Internet Retailing
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 18