7. Market Position
Macro Profile
GDP growth TV Ad spend per capita (USD)
15% 200
10% 150
100
5%
50
0%
0
-5% Sweden Norway Denmark UK US
-10% Sweden Norway Denmark UK US
2008 2009 2010 2008 2009 2010
TV as % of total Ad market TV viewing minutes per day (3+)
50% 360
40% 310
260
30%
210
20%
Free-TV Scandinavia
160
10%
Denmark Sweden Norway UK US 110
Sweden Norway Denmark UK US
7
2008 2009 2010 2008 2009 2010
8. Market Position
Digitalisation Complete
Scandinavian TV landscape
(2010)
IPTV,
9%
DTT,
19%
Scandinavian TV landscape
(2005) Norway –
1 Dec 2009
Denmark – Cable,
1 Nov 2009 Satellite, 52%
Cable, 55% Sweden –
1 Feb 2008 19%
Satellite,
19%
DTT, 7%
Free-TV Scandinavia
Analogue
Terrestrial,
20%
8
9. Market Position
Primary Challenger
Sweden Norway Denmark
Position #2 #3 #2
National penetration
Combined commercial
38.4 22.0 23.1
audience share (15-49)
Free-TV Scandinavia
Catch-up services Yes Yes Yes
Sold on ’bundled’ basis Yes Yes Yes
9
11. Seizing the Opportunity
The “Media House” Model (Sweden)
Complementary channel profiles Average weekly reach (15-49)
100%
Old & Male Old & Female
90%
+0%
80% +24%
70% +10%
60%
50%
40%
30%
20%
10%
0%
Young & Male Young & Female Bonnier MTG ProSiebenSat.1
Free-TV Scandinavia
Source: MMS
2003 2010
11
12. The Next Phase
Untapped Potential
Regional share of total advertising Total regional advertising
(NOK / DKK / SEK billion)
15 Print, 63% Direct
advertising,
14%
10
SEK 14 bn
5
Internet,
14%
0 Radio, 4%
TV, 5%
40% 60% 50% Regional TV advertising
• Expansion of number of regional broadcast zones from
6 to 19 in Q1 2012
MTG, 7%
• Bundled TV, Radio & Internet Ad sales package with TV4, 87%
dedicated sales force of 120 people SEK 700 mn
Free-TV Scandinavia
• Local Ad prices as much as 2x national prices
Other, 6%
12 Source: IRM Media, Regional market report, April 2011
13. Free-TV Scandinavia
Operating Results
(SEK million)
• Ongoing TV ad market shares gains due to:
4,500 50%
- rising penetration levels
- rising audience share following new channel 45%
4,000
launches
- reducing national CPT discount to incumbent 40%
3,500
35%
• …plus focus on growing share of local ad sales 3,000
30%
2,500
• Overall shortage of inventory supply driving up
25%
annual contract & spot prices
2,000
20%
• Sales only down 1% at constant exchange rates in 1,500
2009 recession & up 16% again in 2010 recovery 15%
1,000
10%
• Sales up 8% at constant exchange rates for first 9
months of 2011with increased EBIT margin of 500 5%
25.2%
0 0%
Free-TV Scandinavia
2006 2007 2008 2009 2010
• Anticipated FY 2011 OPEX increase of <10% at
Revenue EBIT EBIT margin
constant exchange rates
13
15. Market Position
Macro Profile
20% GDP growth 400 TV ad spend development
15% 350
10% 300
5% 250
0% 200
CAGR 0.7%
-5% 150
-10% 100
-15% 50
-20%
Index, CEE markets
2008 2009 2010 Index, Western Europé
TV ad spend per capita (USD) TV viewing (minutes per day)
60
50 300
40
30 200
Free-TV Emerging Markets
20
100
10
0 0
2008 2009 2010 Minutes per day 2010
16. Market Position
Primary Challenger
Czech
Estonia Latvia Lithuania Bulgaria Hungary Slovenia Ghana Russia
Republic
Position #1 #1 #1 #2 #2 #3 #2 - #4
Combined
commercial
42.2% 34.4% 45.7% 28.5% 28.0% 8.2% 11.0% 9.9%
audience share
(15-49) (15-49) (15-49) (15-54) (18-49) (18-49) (18-49) (14-49)
(target
demographic)
Catch-up services Yes Yes Yes No Yes No No No Yes
Free-TV Emerging Markets
Sold on ’bundled’
Yes Yes Yes Yes Yes Yes N/A N/A N/A
basis
16
17. Scale Operations in Key Markets
Baltics, Czech Republic, Bulgaria
Commercial Audience Share Financial performance (SEK million)
45%
2,000 60%
40%
50%
35% 1,500
30% 40%
25% 1,000 30%
20% 20%
500
15% 10%
10% 0 0%
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 2007 2008 2009 2010
Czech Republic (15-54) Bulgaria (18-49) Revenue EBIT EBIT margin
Pan-Baltic (15-49)
• Clear market leadership in Baltics with >40% pan-Baltic target group share of viewing as advertising
Free-TV Emerging Markets
spending returns to growth in 2011
• Investments in schedule & new Prima Love channel boost target audience share in Czech Republic &
enable advertising market share gains in low growth environment in 2011
• Stable combined audience share in Bulgaria but no recovery in advertising spending in 2011
17
18. Free-TV Emerging Markets
Operating Results
(SEK million)
2,500
• Sales up 8% at constant exchange rates for first 9
months of 2011with substantially reduced
2,000
operating loss
• Ongoing investments in Hungary, Slovenia & 1,500
Ghana off-set profits in Baltics, Czech Republic &
Bulgaria
1,000
• Anticipated return to high growth & high margins
but recovery currently lagging W Europe
500
• Well-positioned overall in often duopolistic markets
0
2006 2007 2008 2009 2010
Free-TV Emerging Markets
-500
Revenue EBIT
18
19. Participating in Russian Growth
CTC Media
• 38.1% shareholding in Russia’s leading 25% Audience share (4+)
independent TV broadcaster 20%
• Equity stake acquired for USD 83 million - 15%
equity market value of ~USD 2.2 billion 10%
• Co-Chairmanship & total of 4 Board seats
5%
• 3 national Russian TV networks & 1.5x combined
0%
power ratio = ~19% TV advertising market share
• Sales up 15% y/y in ruble terms to USD 601
million in 2010 with OIBDA margin of 34%
• Cash dividend payments of USD 80 million in
2010 and USD 130 million in 2011
CTC Media Russian Ad sales growth 700 000 Operating results (USD millions)
48% (RUB) 600 000
500 000
32% 400 000
Free-TV Emerging Markets
300 000
19%
200 000
13%
100 000
-3% 0
2005 2006 2007 2008 2009 2010
19 2006 2007 2008 2009 2010
Sales EBIT
21. Market Position
Premium Content Provider of
Choice
• MTG & 3rd party Free-TV channels
• MTG thematic sports channels – Viasat Football, Viasat Hockey, Viasat Motor,
Viast Golf, Viasat Sport HD
• MTG thematic movie channels – TV1000 Nordic, TV1000 Action, TV1000 Family,
TV1000 Classic, TV1000 Drama
• MTG thematic documentary channels – Viasat History, Viasat Nature,
Viasat Explorer, Viasat Crime
• Leading 3rd party premium channels – music, news, documentaries, kids, nature etc
• MTG & 3rd party HD channels
Pay-TV Nordic
21
22. The Evolving Opportunity
Technology Changes Consumer
Behaviour
Gatekeeper
Virtual Operator
Owned & Operated Viasat Channels in Independent
in 3rd Party
Satellite Platform 3rd Party Networks Internet
B’band Networks
Environment
Pay-TV Nordic
22
23. Seizing the Opportunity
Growing Viasat...ellite
Satellite Premium subscribers (000’s) Premium satellite ARPU (SEK)
750
5,000
700 4,000
650 3,000
600 2,000
550 1,000
500 0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Value-added services (000’s) • Operating in Europe’s most competitive &
250 digitalised pay-TV market
200 • Satellite gradually losing share to other
distribution forms BUT Viasat gaining market
150
share in the satellite environment
100 • Clear premium pay-TV market leader
50 • Low churn levels following acquisition of key
Pay-TV Nordic
sports rights + new channel launches
0
2006 2007 2008 2009 2010 • Steadily rising premium satellite ARPU due to
price rises & increasing penetration of VAS
23
HDTV PVR Multi-room
24. Seizing the Opportunity
The “Platform Agnostic” Approach
Premium subscriber development (000’s)
1 200
1 000
800
600
400
200
0
2006 2007 2008 2009 2010
DTH satellite 3rd party networks
1991 Jun 2008 Oct 2009 Mar 2010 Jun 2010
Pay-TV Nordic
24
*IPTV subscribers only for 2006-2008; total 3’rd party network subscribers for 2009 and 2010
25. Seizing the Opportunity
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
Access subscription online Tablet Media
Players
• Any Device
Enjoy subscription on multiple PC/Mac
devices in and out of home
Game consoles
Embedded
TV Set
Applications OTT Set-Top box
Pay-TV Nordic
25
26. Pay-TV Nordic
Operating Results
(SEK million)
• Top line growth driven by 3rd party subscriber 5,000 50%
acquisition & rising satellite premium ARPU
4,500 45%
• Margins stable due to combination of underlying 4,000 40%
improvement with investments in sports rights,
3,500 35%
new technologies & additional channels
3,000 30%
• Highly cash generative & proven resilience to
2,500 25%
economic cycle
2,000 20%
• Revenues up 8% at constant exchange rates for
1,500 15%
first 9 months of 2011with increased operating
margin of 19.3% 1,000 10%
500 5%
0 0%
2006 2007 2008 2009 2010
Revenue EBIT EBIT margin
Pay-TV Nordic
26
29. Seizing the Opportunity
Growing the Subscriber Base
500 Satellite subscribers (000’s) Mini-pay subscriptions (millions)
60,000
400
50,000
300
40,000
200
30,000
100 20,000
0 10,000
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
• Viasat is the only satellite Pay-TV operator in the • Business launched in 2003 with sale of Viasat
Baltics – premium offering with stable subscriber movie & documentary channels to
base & ARPU 3rd party networks in C&E Europe
• Includes Ukrainian platform since Q1 2008 & • Now more than 60 million subscriptions to
Russian platform since Q1 2010 19 Viasat movie, documentary and sports
Pay-TV Emerging Markets
channels to ~2,500 3rd party networks in
28 countries including US
• Launch of 4 pay-TV channels in Africa &
2 HD channels in CEE, Russia & CIS
29
30. Ukraine
Europe’s 2nd Largest Territory
TV distribution market share Total satellite market share
1%
100% 2% 0%
0%
80%
60%
40%
20%
0%
97%
Free satellite TV Viasat NTV+
Cable (tot.) Pay DTH Free DTH Poverkhnost Other
DTT (tot.) IPTV (tot.) Terr. Analogue
Satellite pay-TV market share
• Substantial market opportunity – Europe’s second
largest country by land mass 2% 2%
5%
• 50% of ViaStrong satellite platform acquired
in Q2 2008 & further 35% acquired in Q2 2010 29%
Pay-TV Emerging Markets
• Selling premium packages of Viasat & 3rd party
channels 63%
• Already larger than NTV+ with unprompted brand
awareness levels of over 60%
• 5 year breakeven horizon from launch in 2007
Viasat NTV + Tricolor Viva Poverhnost' TV
30
Sources: Screen Digest, GFK and internal analysis
31. Russia
Europe’s Largest Territory
TV distribution market share Total satellite market share
100% Orion- Raduga TV,
Express, 2%
80% Platform
NTV+, 10% 4%
60% HD, 1%
40%
20%
0%
Tricolor,
83%
Cable (tot.) Pay DTH Free DTH
DTT (tot.) IPTV (tot.) Terr. Analogue
Indexed subscriber growth (2010)
• Even more substantial market opportunity –
Europe’s largest country by population
250
• Low levels of satellite penetration
• 50% of Raduga DTH satellite platform acquired in 200
Pay-TV Emerging Markets
Q1 2010
150
• Mid-tier mass market offering with competitive
offering of 80 MTG & 3rd party channels at 100
attractive price
• 5 year breakeven horizon from launch in 2009 50
31 0
Sources: Screen Digest and internal analysis Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
32. Pay-TV Emerging Markets
Operating Results
(SEK million)
• Top line growth currently driven by volume 1,000 50%
(addition of satellite subscribers & mini-pay
subscriptions) rather than value (low prevailing 900 45%
ARPU levels)
800 40%
• Profitability of mini-pay channels business 700 35%
supports ongoing investments in Ukrainian &
600 30%
Russian satellite platforms
500 25%
• 2010 profitability impacted by full consolidation of
Ukrainian platform from July & inclusion of Russian 400 20%
platform from February
300 15%
• Business highly geared to subscriber growth & 200 10%
ARPU increases
100 5%
• Revenues up 15% at constant exchange rates for 0 0%
first 9 months of 2011with operating margin of 2006 2007 2008 2009 2010
Pay-TV Emerging Markets
6.2%
Revenue EBIT EBIT margin
32
34. Financial Performance
Flexible Position
Income Cash flow Financial position
SEK millions FY 2010 SEK millions FY 2010 SEK millions FY 2010
Sales 13,101 Net cash flow from Total debt 2,526
1,533
operations
EBIT (incl. Associates) 2,355 Cash & equivalents 500
-300
Pre-tax profit Cash flow to investing
2,321
Net debt 2,026
Net income from Cash flow to financing -707
1,750 Net debt / LTM
continuing operations 0.7x
underlying EBITDA
Total net incl Net change in cash &
3,541 -135
discontinued ops cash equivalents Available liquid funds 4,400
• Significant impact on reported results • Cash flow from operations up 48% & • New unsecured SEK 6.5 billion 5 year
of y/y strengthening of SEK reporting equivalent to 70% of Group EBITDA revolving multi-currency credit facility
currency vs. operating currencies arranged in October 2010
• Receipt of USD 31 mn (SEK 216 mn)
• Annual tax rate of 25-30% of dividends from CTC Media in 2010 • CAPEX running at <1% of sales
& intention to pay USD 130 mn in 2011
34
35. Capital Allocation
Reinvesting in Growth
Cash flows from Scandinavia invested into
Emerging Markets
• 1997: Launch of Baltic Free-TV operations
• 2000: Acquisition of 95% of Hungarian operation
• 2001: Acquisition of 75% of DTV in Russia
• 2002: Acquisition of 36% of CTC Media in Russia
• 2003: Launch of Mini-Pay business
• 2004: Launch of Baltic Pay-TV platform
• 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: Acquisition of 50% of pay-TV platform in Ukraine
• 2008: Acquisition of 100% of Nova TV in Bulgaria
• 2008: Launch of channel in Ghana (W Africa)
• 2010: Acquisition of 50% of pay-TV platform in Russia
• 2010: Acquisition of additional 35% of Viasat Ukraine
Financial Resources
- Combined with ongoing launch of Free-TV & Pay-TV
channels every year
35
36. Capital Allocation
Shareholder Returns
• 25% Return On Capital Employed for 2010 Annual Cash dividends (SEK)
16
• 30% Return On Equity for 2010 14
12
• CDON Group (MTG’s internet retailing 10
operations) distributed to shareholders in 8
December 2010 with market value of
6
>SEK 2 billion
4
• Increased cash dividend of SEK 7.50 per 2
share approved by AGM in May 2011 & 0
distributed in Q2 2011 2007 2008 2009 2010
Ordinary Extraordinary
Financial Resources
36