2. Entertainment Across The Board
5 business segments
Sweden
Norway
Denmark
Estonia
Latvia
Lithuania
Bulgaria
Czech Republic
Hungary
Ghana
• 4 satellite platforms
• Virtual operator in
3rd party networks
• 20 channels • 5 satellite platforms –
Baltics, Ukraine & Russia
• 19 channels on 3rd party
networks
• 9 Free-TV channels
Free-TV
Scandinavia
Pay-TV
Nordic
Free-TV
Emerging Markets
Pay-TV
Emerging Markets
• Radio
• Modern Studios +
MAP
Other
Businesses
2
3. Integrated Group
With a Global footprint
3
32 free-TV channels in 10 countries
Satellite pay-TV platforms in 9 countries
85 million wholesale channel subscriptions
in 34 countries3
5. 5
Complementary revenue streams
Cyclical & non-cyclical balance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012
Free-TV Scandinavia Pay-TV Nordic
Emerging Markets
42.0%
49.0%
9.0%
Advertising
Subscription
B2B / B2C
MTG Revenue split – by source (2012) Revenue split – by segment (2012)
• Operational synergies by centralised broadcast facilities
• Cross-platform content acquisition makes us a more attractive partner for content providers
• Content monetized on free-TV, pay-TV & online & benefits from full exclusivity
• Benefits from cyclical advertising growth mixed with stable pay-TV revenues
6. Stable Business Model
With long-term profitable growth
6
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Revenues EBIT* Margin
SEK million
• Integrated structure enables Group growth through the whole macroeconomic
cycle, with continued strategic content investments
• Sales CAGR OF 10% between 2002-2012
• EBIT CAGR of 35% between 2002-2012 excluding associated company
income
7. Strong Financial Position
Increasing dividends & net cash
7
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Liquid funds (incl. Unused credit facilities) Net debt
Net cash position as of Q1 2013 & SEK
6.5 billion of available liquid funds
SEK million
Increasing dividend yield
(SEK million)
• Reinvesting on organic growth
across our territories
• Selective & opportunistic M&A
in Nordic & Emerging markets
• Focus on 3 key areas:
• Content
• Technology
• Countries
363
498
600
667
2010 2011 2012 2013
9. Multichannel Media Houses
In 3 countries
9
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2008 2009 2010 2011 2012
Revenue EBIT EBIT margin
Sweden
0.0%
10.0%
20.0%
30.0%
40.0%
2011 2012
0.0%
10.0%
20.0%
30.0%
2011 2012
0.0%
10.0%
20.0%
30.0%
2011 2012
CSOV % (15-49)
Norway
Denmark
CSOV % (15-49)
CSOV % (15-49)
Financial Performance
SEK million
• #2 position in Sweden & Denmark & #3
position in Norway
• Advertising sold on a bundled ’Media House’
basis with complementary channel positioning
driving incremental reach
• Key deals signed with Canal Digital & Boxer to
extend reach of TV3 & TV3 PULS in Denmark
• 3rd channel to be launched in Norway in 2013
10. And Emerging Markets Portfolio
With room to grow further
10
Estonia Latvia** Lithuania
Czech
Republic
Bulgaria Hungary Ghana Russia
Position #1 #1 #1 #2 #2 #3 - #4
Combined
commercial
audience share*
(target
demographic)
39.6%
(15-49)
61.1%
(15-49)
42.3%
(15-49)
38.7%
(15-54)
29.5%
(18-49)
8.6%
(18-49)
n/a
(15-49)
11%***
(6-54)
Sold on bundled
basis
Yes Yes Yes Yes Yes Yes n/a n/a
Cath-up services No
* FY 2012
* * Including LNT channels from Q3 2012
*** CTC Network only
11. Emerging Markets
Operationally geared for recovery
11
Free-TV Emerging Markets
(2012)
Czech Republic, Bulgaria, Baltics
(2012)
-500
0
500
1,000
1,500
2,000
2,500
2008 2009 2010 2011 2012
Revenue EBIT
-5%
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2012
Revenue EBIT EBIT margin
SEK million SEK million
• Ongoing strategic investments in content to drive growth
• Incremental margins >50% position the operations well for market recovery
• Significant audience & market share gains in key Czech and Bulgarian territories during
2012 & new sales cooperations to expand bundled media house reach from 2013
12. Digitalisation Changes The Game
Even playing field presents
opportunities
12
Sweden –
1 Feb 2008
Denmark –
1 Nov 2009
Norway –
1 Dec 2009
Scandinavian TV landscape
(2011)
Cable
52%Satellite
19%
DTT
19%
IPTV
9%
Cable 55%
Satellite
19%
DTT 7%
Analogue
Terrestrial
20%
Scandinavian TV landscape
(2005)
13. Opportunities of Digitalisation
We benefit from fragmentation
13
0%
10%
20%
30%
40%
50%
60%
70%
80%
Bonnier MTG SBS
13
2003 2012
-2% +21% +8%
Source: MMS
• Digitalisation pressures audience shares for major channels
• Media house enables increased pricing power for smaller & niche channels
• High power ratios provide barriers to entry to new competitors
0
5
10
15
20
25
30
35
40
45
50
TV3 TV4 Kanal 5 MTG TV4 Group SBS
FY 2002 FY 2012
Commercial audience share
(15-49, Sweden)
Average Weekly Reach
(15-49, Sweden)
%
14. TV Viewing is Expanding Online
MTG’s core audiences are early
adapters
14
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Computer
Screen
Mobile Phone TV-screen Tablet
92%
83%
1%
1%
16%
7%
Traditional TV Web-TV Mobile-TV
Age 15-24
+16%
+77%
+54%
+278%
Q1 2011 Q1 2012
Age 15-74
Viewing Platform Viewing by Device
15. With Added Revenue Streams
& higher pricing levels
15
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2010 2011 2012 2013
0
50
100
150
200
250
300
350
400
450
2010 2011 2012 * 2013* 2014* 2015*
Online TV market Growth
(Sweden)
Number of streams on MTG TV
Play devices
AVOD revenue per viewer and per hour are higher than in traditional linear TV
Price = 2.8x higher online & even higher on mobile
SEK million
16. MTG Already Leading Online
We are leveraging our strong
traditional brands
16
34.80%
36.70%
Linear Online
Online viewing higher than traditional
linear media house audience share
(Sweden, FY 2012)
Key free-TV brands launched online to
drive viewing & strenghten
engagement
Key free-TV brands launched online to
drive viewing & strenghten
engagement
17. Making Content Live Longer
By extending product life cycles
17
Linear On-demand
Cross-promotion for brands &
other formats
Editorial post-show
content & talent
engagement
Channel viewers to
other IP’s via online
presence
Increased exposure & reach
Social media
integration
Second screen
drive engagement
Extends product life cycle
Extra content Previews & teasers
18. Exploring New Business Models
Web exclusive content
18
+
• Web exclusive AVOD content
production
• Editorial integration in
cooperation with key
advertisers
• Drivers consumer sales:
+70% during campaign
• Absolut Torr now recurring
customer of TV3 Sweden
19. And Engaging With Our Viewers
19
• Up to 85% of TV viewers use other devices (smartphones, tablets,
laptops) while watching linear content
• Over half of viewers look up related content to what they are watching &
almost half are browsing for products seen on a show or in an ad
• Over a fifth of viewers are chatting about what they are watching on
Facebook & Twitter
• Like.tv second screen companion app presents an opportunity to
facilitate the discourse around TV & connect with the customer
Source: The Guardian,: IMRG, Decipher, Harris Interactive, Google, YouGov, Deloitte
21. Over 25 Years of Evolution
Moving alongside our customers
21
From one channel in 1987 to 32 free-TV channels, 11 satellite platforms &
comprehensive online presence in 2013
Channel
(Free-TV)
Channels + platform
(Free-TV + Pay-TV)
Channels, platforms &
Over The Top
23. OTT Opens Up a Whole New World
& the space is growing rapidly
23
Satellite Virtual operator Open internet
~1.6m
households
Virtual Operator
~4.2 million
OTT
~9.0 million
24. Viaplay – Market Leading Offering
On any device
24
• MTG first to market with device independent Over-The-Top (OTT) solution
• Anytime – Access all services whenever you want, on an ‘on-demand’ basis
• Anywhere – Access over the open internet, no gatekeepers
• Any device – On your phone, tablet, PC, smart TV, games console…
25. Viaplay – Customer Focus
Highly rated in consumer tests
25
Internetworld - Top100
Best Entertainment Site 2012: #2
”For the biggest selection of movies, chose Viaplay.”
- Kritiker.se (extensive test of Viaplay, Netflix and Filmnet)
26. Expanding Our Service Offering
Viagame
26
• Expanding our offering to encompass other aspects of media
• Cross-promotion, sales synergies, relevant customer databases
27. Exporting the Pay-TV Model
Broad EE, Russia & CIS exposure
2727
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Countries 7 11 15 22 23 24 25 25 28 34
Channels 2 3 5 6 7 8 10 15 19 23
Satellite platforms
Baltics Ukraine Russia
28. Popular & Established Brands
Market leading channel portfolio
28
28
Source: TNS Russia 2012, Screen Digest 2012
Top 10 pay-TV channels in Russia (monthly
reach, million people)
Share of viewing – Free TV and Viasat
channels (Russia, 25-44*)
* Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:00
13.1
11.3
10.7
10.6
9.5
5.5
3.8
2.8
2.7
2.4
2.0
1.9
1.9
1.9
1.3
0
4
8
12
16
11.0
11.9
12.2
13.2
14.1
15.5
17.9
19.4
20.6
21.2
0 10 20 30
Dom Kino
Sony Entertainment TV
Viasat History
National Geographic
Eurosport
Moya Planeta
Animal Planet
Discovery Channel
TV 1000
TV 1000 Russian Kino
29. The next step
HD Channel package & Viaplay
29
• Four exclusive key premium content
deals signed in Russia, Ukraine & CIS
• New premium HD channel package
launched in Russia & Ukraine
• Viaplay launched & available to HD
customers and on independent basis
Exclusive Premium Content from major Hollywood Studios
30. Pay-TV
Investing in Growth
30
Pay-TV Nordic
(2012)
Pay-TV Emerging Markets
(2012)
SEK million SEK million
• Investments in content & Viaplay online pay-TV
platform to drive growth
• Premium satellite ARPU continues to grow due
to expansion of value added services
• 10-12% margin expected for FY2013 &
increased profitability in 2014
• Investments in premium content in Russia,
Ukraine & CIS
• Launched Viaplay in Russia & Ukraine
• Expanding mini-pay business to Africa &
pushing satellite operations in Russia &
Ukraine
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
1,000
2,000
3,000
4,000
5,000
6,000
2006 2007 2008 2009 2010 2011 2012
Revenue EBIT EBIT margin
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
200
400
600
800
1,000
1,200
2006 2007 2008 2009 2010 2011 2012
Revenue EBIT EBIT margin
