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Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 1
Modern Times Group MTG AB
Corporate Presentation
November 2010
Maximizing the Power of Entertainment
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 2
International Entertainment Broadcaster with Largest
Broadcast Footprint in Europe
• Growth company with integrated Free-TV &
Pay-TV operations & centralised play-out
facility in London
• Largest Free-TV & Pay-TV operator in
Scandinavia & the Baltics
• Second largest Free-TV operator in Czech
Republic & Bulgaria with additional
operations in Hungary, Slovenia & Ghana
• Emerging Market satellite Pay-TV platforms
in Baltics, Russia & Ukraine + Pay-TV
channels available in 25 countries incl. US
• Largest Nordic Radio Operator & Leading
Internet Retailer
• 38.3% shareholder in Russia’s largest
independent television broadcaster - CTC
Media (Nasdaq: ‘CTCM’)
* When excluding SEK 270 million of associated company income
and SEK -3,352 million of non-recurring items
LTM Sales SEK 15,001 million ( USD 2,299 million)
LTM Operating Income SEK 2,431 million* ( USD 373 million)
No of employees 2,900
Listing Nasdaq OMX Nordic (Large Cap Mkt)
Symbol MTGB
Market Cap SEK 34.4 billion ( USD 5.3 billion)
*Excluding non-recurring items
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 3
Operationally Geared Growth Company
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2002 2003 2004 2005 2006 2007 2008* 2009* 9M
2009
9M
2010
Revenue EBIT
(SEK million)
* Excluding non-recurring items
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 4
Sustained Market Outperformance
• Balanced revenue mix of cyclical advertising
sales & linear subscription sales
• Unparalleled efficiency due to control of content,
packaging, pricing & distribution
• Integrated operating structure yields synergies &
competitive advantage
• Increasing exposure to historically high growth
emerging markets with high operating leverage
• Proven resilience to economic downturn in 2009
with 3% full year sales growth at constant
exchange rates & 12% group operating margin
(excluding associated company income)
Segmental revenue mix
2009 revenue mix
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 5
6,000
50,000
0
25
50
75
100
125
150
175
Market Dynamics
TV Advertising Spend (USD million)
0
200
400
600
TV Advertising Spend Per Capita (USD)
TV Ad Spend / Total Ad Spend TV Viewing (minutes per day)
2009 data except * 2008 statistics; ** 2007 statistics
USA
USA
UK
USA
UK
Russia3,000
USA
Western
Europe
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 6
Business Segment Profile & Performance
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 7
A Modern Media Group for Modern Times
Sweden Denmark Norway Estonia Latvia Lithuania Czech Hungary Bulgaria Slovenia Russia
#2 #2 #2 #1 #1 #1 #2 #3 #2 #2 #4
Ukraine Russia
Raduga
Pay-TV Operator
Free-TV Operator
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 8
Free-TV Scandinavia
Commercial Audience Share (15-49)
Operating Performance (SEK million)
National Penetration
• Sales up 18% y/y at constant exchange rates to SEK 3.02 bn
for 9M 2010 following strong market recovery & macro development
• Substantial advertising market share gains due to:
- rising penetration levels following digitalisation
- increasing target audience shares with complementary channel
launches
- bundled pricing strategy & narrowing of pricing discount to
incumbents
• Balancing of cost control & programming investments - EBIT up
36% y/y to SEK 732 mn for 9M 2010, with increased operating
margin of 24%
Rising Audience & Advertising Market Shares
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 9
0
20
40
60
80
100
TV4 Viasat SBS
2003 2009
Source: MMS
Advertising sold on bundled 'Total Reach’ basis...Complementary channel profiles...
Weekly Reach (15-49)
%
-11% +32% +5%
Free-TV Scandinavia
The Multi-Channel Media House Model (Example: Sweden)
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 10
Pay-TV Nordic
Premium Subscriber Development (thousands)
Operating Performance (SEK million)
Premium Satellite ARPU (SEK)
• Sales up 8% y/y at constant exchange rates to SEK 3.35 bn
for 9M 2010
• Ongoing subscriber growth driven by increasing penetration of IPTV
- Virtual Operator agreements with all major Scandinavian
broadband networks & development of online Viasat OnDemand
platform
• Ongoing Premium Satellite ARPU growth driven by price increases
and accretive value-added services – multi-room & HDTV
• EBIT up 15% y/y to SEK 614 mn for 9M 2010, with operating
margin of 18% despite ongoing investments in key programming
assets (incl. Swedish rights to English Premier League football) &
addition of channels to platform
Subscriber & ARPU Growth
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 11
Pay-TV Nordic
The New ‘Anytime Anywhere’ Paradigm
Owned & Operated
Satellite Platform
Viasat Channels in
3rd Party Networks
Virtual Operator in
3rd Party Networks
Gatekeeper
Independent Internet
Environment
• 10 Premium packages of Viasat & 3rd
party Free & Pay-TV channels
• Subscription & other fees with 12 or
24 month contracts
• PVR, HD, Multi-room, on-demand
services
• Satellite universe excludes city-
centres
• Viasat channels sold individually on
‘mini-pay’ wholesale basis to cable &
DTT network operators
• Variable fee per subscriber
• No customer relationship
• Platform agnostic
• Premium Viasat channel packages
provided through 3rd party double &
triple-play networks
• Direct access to customer base
including city-centre homes unable to
receive satellite service
• Revenue sharing model with billing
through 3rd party
• Lower ARPU & SAC than own
satellite platform = equivalent
profitability levels
• Device & network agnostic
• OnDemand offering via internet
portal = securing position as the
online free & pay-TV content
aggregator
• Viasat & 3rd party Free-TV channel
catch-up services + On demand
movies , TV series & exclusive live
sports
• Subscription / pay per day / pay per
event pricing
• Availability through over the top
solutions
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 12
Free-TV Emerging Markets
Operating Performance (SEK million)
Commercial Audience Share
Return to Growth in Stable Market Conditions
• Sales up 3% y/y at constant exchange rates to SEK 1.37 bn for
9M 2010 with sales growth in each territory following advertising
market share gains in stabilised market conditions
• Muti-channel stategy in scale & established Baltic, Czech &
Bulgarian markets
• Clear market leader in Baltics with 41% pan-Baltic commercial
share of viewing (15-49) following audience share gains in each
country
• Challenger in duopolistic Czech & Bulgarian markets with rising
power ratios
• EBIT loss reduced to SEK 100 mn for 9M 2010 following return to
growth & y/y reduction in operating costs
• Ongoing investments in development of operations in Slovenia &
Ghana
• Operationally geared to recovery with expectation of gradual
return to pre-crisis growth levels
• Ongoing review of start-up & acquisition opportunities in Emerging
Europé & sub-Saharan Africa
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 13
Pay-TV Emerging Markets
Satellite Subscribers (thousands)
Operating Performance (SEK million)
Mini-pay Subscriptions (millions)
• Sales up 14% y/y at constant exchange rates to SEK 671 mn
following subscriber & subscription growth
• Owner of 100% of largest digital broadcasting platform in Baltics,
85% of Ukrainian satellite platform & 50% of Russian satellite
platform + virtual operator in leading Estonian broadband network
• 15 Viasat channels sold on min-pay / wholesale basis to 3rd party
cable & satellite operators in 25 countries including US
• Ongoing investments in development of early stage Ukrainian &
Russian satellite platforms
• EBIT of SEK 82 mn for 9M 2010, with operating margin of 12%
• Geared to emergence of pay-TV & price increases as economies
recover & consumer spending power rises over time
Satellite Platforms in 5 countries & Channels sold in 25 countries
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 14
CTC Media, Inc.
Revenue Growth in RUB
Operating Performance (USD thousands)
Audience Share Dynamics (9M 2010)
• Largest shareholder in Nasdaq quoted company - 38.3%
shareholding acquired for USD 83 mn with current equity
market value of ~USD 1.4 bn
• Sales up 15% y/y in ruble terms to USD 379.0 mn for 9M 2010
following 8% y/y growth in Russian advertising sales in ruble
terms - guidance for FY 2010 sales growth of ~13%
• 12.8% combined 4+ audience share &19% combined national
advertising market share or CTC, Domashny & DTV networks
• OIBDA of USD 116 mn for 9M 2010, with margin of 31% &
guidance for FY 2010 margin of >35%
• Net cash position & payment of USD 80 million dividend in 2010
Equity Participation in #1 Russian Independent Media Company
48%
19%
32%
-3%
8%
2006 2007 2008 2009 9M 2010
CTC Media ad sales growth
0
200
400
600
800
2006 2007 2008 2009 9M 2009 9M 2010
Sales EBIT
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 15
Financial Performance & Position
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 16
Strong & Flexible Financial Position
SEK million
9M
2010
Sales 10,925
EBIT (incl. Associates) 1,706
Pre-tax profit 1,664
Net income 1,182
Income
SEK billion
30 Sep
2010
Total debt
Cash & equivalents
3,562
531
Net debt 3,031
Net debt / LTM
underlying EBITDA
Available liquid funds
1.1x
3,631
Financial Position
SEK million
9M
2010
Cash flow from ops 1,294
CAPEX
- as % of revenues
Dividend
Net change in cash &
equivalents
118
1%
363
-137
Cash Flow
• New unsecured SEK 6.5 bn five year
revolving multi-currency credit facility
arranged in October 2010 to replace
existing facilities with more flexible
structure & attractive terms
• 24% ROCE & 27% ROE
• Significant impact of y/y
strengthening of SEK reporting
currency vs. operating currencies on
reported results – sales growth
higher at constant exchange rates
than reported
• Annual tax rate of 25-30%
• Payment of increased annual
dividend of SEK 5.50 per share
• Increased working capital following
key programming rights investments
USD 1 = SEK 6.52 (November 4, 2010)
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 17
CDON Group
• Sales up 27% y/y at constant exchange rates to
SEK 1.44 bn & EBIT up 31% to SEK 97 mn for
9M 2010 , with 7% operating margin
• MTG EGM on 21 October 2010 approved distribution of
all CDON Group shares to MTG shareholders & listing of
shares on Nasdaq OMX Stockholm stock exchange
– Shareholders to receive 1 CDON Group share per MTG Class A or
Class B share held
– Intention to complete spin-off before end of 2010
Operational Performance (MSEK)
Online Retail Penetration 2009
Market Leading Internet Retailer to be Spun-Off to Shareholders
0
50
100
150
200
0
500
1,000
1,500
2,000
2005 2006 2007 2008 2009
Entertainment Fashion Health & Sports EBIT
The Swedish Online Retail Market
6.0%
4.7%
3.8% 3.7%
3.5% 3.4%
0%
2%
4%
6%
8%
US Denmark Nordic
average
Sweden Norway Finland
Source: HUI
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 18
Clear Objectives & Priorities
– Annual Organic Sales Growth of more
than 10%
– Operating Profit Margin of more than 20%
for Viasat Broadcasting (even excluding
associated company income)
– Increasing proportion of Emerging Market
Sales & Operating Income
– Generation of healthy ROE & ROCE
– Generation of healthy Total Shareholder
Returns
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 19
The Lean & Mean Broadcasting Machine
• Operationally geared growth company with balanced (advertising & subscription revenues)
& diversified (geographically) revenue mix
• Driving growth primarily through organic expansion & start-ups
• Challenger to incumbents in structurally evolving markets
• Successful multi-channel, multi-platform, multi-territory media house model
• Efficient integrated operating structure yields competitive advantage & synergies
• Investing healthy cash flows from Nordic region into emerging markets
• Strict cost control, cash management & capital allocation
• Strong & flexible financial position
• Delivering enhanced shareholder returns
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 20
For further information, please visit www.mtg.se or contact:
MTG Investor Relations
Tel: +44 7768 440 414 / +44 7791 138 486
Email: investor.relations@mtg.se
Modern Times Group MTG AB
Nasdaq OMX Stockholm : MTGA, MTGB 21

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MTG Corporate Presentation November 2010

  • 1. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 1 Modern Times Group MTG AB Corporate Presentation November 2010 Maximizing the Power of Entertainment
  • 2. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 2 International Entertainment Broadcaster with Largest Broadcast Footprint in Europe • Growth company with integrated Free-TV & Pay-TV operations & centralised play-out facility in London • Largest Free-TV & Pay-TV operator in Scandinavia & the Baltics • Second largest Free-TV operator in Czech Republic & Bulgaria with additional operations in Hungary, Slovenia & Ghana • Emerging Market satellite Pay-TV platforms in Baltics, Russia & Ukraine + Pay-TV channels available in 25 countries incl. US • Largest Nordic Radio Operator & Leading Internet Retailer • 38.3% shareholder in Russia’s largest independent television broadcaster - CTC Media (Nasdaq: ‘CTCM’) * When excluding SEK 270 million of associated company income and SEK -3,352 million of non-recurring items LTM Sales SEK 15,001 million ( USD 2,299 million) LTM Operating Income SEK 2,431 million* ( USD 373 million) No of employees 2,900 Listing Nasdaq OMX Nordic (Large Cap Mkt) Symbol MTGB Market Cap SEK 34.4 billion ( USD 5.3 billion) *Excluding non-recurring items
  • 3. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 3 Operationally Geared Growth Company 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2002 2003 2004 2005 2006 2007 2008* 2009* 9M 2009 9M 2010 Revenue EBIT (SEK million) * Excluding non-recurring items
  • 4. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 4 Sustained Market Outperformance • Balanced revenue mix of cyclical advertising sales & linear subscription sales • Unparalleled efficiency due to control of content, packaging, pricing & distribution • Integrated operating structure yields synergies & competitive advantage • Increasing exposure to historically high growth emerging markets with high operating leverage • Proven resilience to economic downturn in 2009 with 3% full year sales growth at constant exchange rates & 12% group operating margin (excluding associated company income) Segmental revenue mix 2009 revenue mix
  • 5. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 5 6,000 50,000 0 25 50 75 100 125 150 175 Market Dynamics TV Advertising Spend (USD million) 0 200 400 600 TV Advertising Spend Per Capita (USD) TV Ad Spend / Total Ad Spend TV Viewing (minutes per day) 2009 data except * 2008 statistics; ** 2007 statistics USA USA UK USA UK Russia3,000 USA Western Europe
  • 6. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 6 Business Segment Profile & Performance
  • 7. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 7 A Modern Media Group for Modern Times Sweden Denmark Norway Estonia Latvia Lithuania Czech Hungary Bulgaria Slovenia Russia #2 #2 #2 #1 #1 #1 #2 #3 #2 #2 #4 Ukraine Russia Raduga Pay-TV Operator Free-TV Operator
  • 8. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 8 Free-TV Scandinavia Commercial Audience Share (15-49) Operating Performance (SEK million) National Penetration • Sales up 18% y/y at constant exchange rates to SEK 3.02 bn for 9M 2010 following strong market recovery & macro development • Substantial advertising market share gains due to: - rising penetration levels following digitalisation - increasing target audience shares with complementary channel launches - bundled pricing strategy & narrowing of pricing discount to incumbents • Balancing of cost control & programming investments - EBIT up 36% y/y to SEK 732 mn for 9M 2010, with increased operating margin of 24% Rising Audience & Advertising Market Shares
  • 9. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 9 0 20 40 60 80 100 TV4 Viasat SBS 2003 2009 Source: MMS Advertising sold on bundled 'Total Reach’ basis...Complementary channel profiles... Weekly Reach (15-49) % -11% +32% +5% Free-TV Scandinavia The Multi-Channel Media House Model (Example: Sweden)
  • 10. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 10 Pay-TV Nordic Premium Subscriber Development (thousands) Operating Performance (SEK million) Premium Satellite ARPU (SEK) • Sales up 8% y/y at constant exchange rates to SEK 3.35 bn for 9M 2010 • Ongoing subscriber growth driven by increasing penetration of IPTV - Virtual Operator agreements with all major Scandinavian broadband networks & development of online Viasat OnDemand platform • Ongoing Premium Satellite ARPU growth driven by price increases and accretive value-added services – multi-room & HDTV • EBIT up 15% y/y to SEK 614 mn for 9M 2010, with operating margin of 18% despite ongoing investments in key programming assets (incl. Swedish rights to English Premier League football) & addition of channels to platform Subscriber & ARPU Growth
  • 11. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 11 Pay-TV Nordic The New ‘Anytime Anywhere’ Paradigm Owned & Operated Satellite Platform Viasat Channels in 3rd Party Networks Virtual Operator in 3rd Party Networks Gatekeeper Independent Internet Environment • 10 Premium packages of Viasat & 3rd party Free & Pay-TV channels • Subscription & other fees with 12 or 24 month contracts • PVR, HD, Multi-room, on-demand services • Satellite universe excludes city- centres • Viasat channels sold individually on ‘mini-pay’ wholesale basis to cable & DTT network operators • Variable fee per subscriber • No customer relationship • Platform agnostic • Premium Viasat channel packages provided through 3rd party double & triple-play networks • Direct access to customer base including city-centre homes unable to receive satellite service • Revenue sharing model with billing through 3rd party • Lower ARPU & SAC than own satellite platform = equivalent profitability levels • Device & network agnostic • OnDemand offering via internet portal = securing position as the online free & pay-TV content aggregator • Viasat & 3rd party Free-TV channel catch-up services + On demand movies , TV series & exclusive live sports • Subscription / pay per day / pay per event pricing • Availability through over the top solutions
  • 12. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 12 Free-TV Emerging Markets Operating Performance (SEK million) Commercial Audience Share Return to Growth in Stable Market Conditions • Sales up 3% y/y at constant exchange rates to SEK 1.37 bn for 9M 2010 with sales growth in each territory following advertising market share gains in stabilised market conditions • Muti-channel stategy in scale & established Baltic, Czech & Bulgarian markets • Clear market leader in Baltics with 41% pan-Baltic commercial share of viewing (15-49) following audience share gains in each country • Challenger in duopolistic Czech & Bulgarian markets with rising power ratios • EBIT loss reduced to SEK 100 mn for 9M 2010 following return to growth & y/y reduction in operating costs • Ongoing investments in development of operations in Slovenia & Ghana • Operationally geared to recovery with expectation of gradual return to pre-crisis growth levels • Ongoing review of start-up & acquisition opportunities in Emerging Europé & sub-Saharan Africa
  • 13. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 13 Pay-TV Emerging Markets Satellite Subscribers (thousands) Operating Performance (SEK million) Mini-pay Subscriptions (millions) • Sales up 14% y/y at constant exchange rates to SEK 671 mn following subscriber & subscription growth • Owner of 100% of largest digital broadcasting platform in Baltics, 85% of Ukrainian satellite platform & 50% of Russian satellite platform + virtual operator in leading Estonian broadband network • 15 Viasat channels sold on min-pay / wholesale basis to 3rd party cable & satellite operators in 25 countries including US • Ongoing investments in development of early stage Ukrainian & Russian satellite platforms • EBIT of SEK 82 mn for 9M 2010, with operating margin of 12% • Geared to emergence of pay-TV & price increases as economies recover & consumer spending power rises over time Satellite Platforms in 5 countries & Channels sold in 25 countries
  • 14. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 14 CTC Media, Inc. Revenue Growth in RUB Operating Performance (USD thousands) Audience Share Dynamics (9M 2010) • Largest shareholder in Nasdaq quoted company - 38.3% shareholding acquired for USD 83 mn with current equity market value of ~USD 1.4 bn • Sales up 15% y/y in ruble terms to USD 379.0 mn for 9M 2010 following 8% y/y growth in Russian advertising sales in ruble terms - guidance for FY 2010 sales growth of ~13% • 12.8% combined 4+ audience share &19% combined national advertising market share or CTC, Domashny & DTV networks • OIBDA of USD 116 mn for 9M 2010, with margin of 31% & guidance for FY 2010 margin of >35% • Net cash position & payment of USD 80 million dividend in 2010 Equity Participation in #1 Russian Independent Media Company 48% 19% 32% -3% 8% 2006 2007 2008 2009 9M 2010 CTC Media ad sales growth 0 200 400 600 800 2006 2007 2008 2009 9M 2009 9M 2010 Sales EBIT
  • 15. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 15 Financial Performance & Position
  • 16. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 16 Strong & Flexible Financial Position SEK million 9M 2010 Sales 10,925 EBIT (incl. Associates) 1,706 Pre-tax profit 1,664 Net income 1,182 Income SEK billion 30 Sep 2010 Total debt Cash & equivalents 3,562 531 Net debt 3,031 Net debt / LTM underlying EBITDA Available liquid funds 1.1x 3,631 Financial Position SEK million 9M 2010 Cash flow from ops 1,294 CAPEX - as % of revenues Dividend Net change in cash & equivalents 118 1% 363 -137 Cash Flow • New unsecured SEK 6.5 bn five year revolving multi-currency credit facility arranged in October 2010 to replace existing facilities with more flexible structure & attractive terms • 24% ROCE & 27% ROE • Significant impact of y/y strengthening of SEK reporting currency vs. operating currencies on reported results – sales growth higher at constant exchange rates than reported • Annual tax rate of 25-30% • Payment of increased annual dividend of SEK 5.50 per share • Increased working capital following key programming rights investments USD 1 = SEK 6.52 (November 4, 2010)
  • 17. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 17 CDON Group • Sales up 27% y/y at constant exchange rates to SEK 1.44 bn & EBIT up 31% to SEK 97 mn for 9M 2010 , with 7% operating margin • MTG EGM on 21 October 2010 approved distribution of all CDON Group shares to MTG shareholders & listing of shares on Nasdaq OMX Stockholm stock exchange – Shareholders to receive 1 CDON Group share per MTG Class A or Class B share held – Intention to complete spin-off before end of 2010 Operational Performance (MSEK) Online Retail Penetration 2009 Market Leading Internet Retailer to be Spun-Off to Shareholders 0 50 100 150 200 0 500 1,000 1,500 2,000 2005 2006 2007 2008 2009 Entertainment Fashion Health & Sports EBIT The Swedish Online Retail Market 6.0% 4.7% 3.8% 3.7% 3.5% 3.4% 0% 2% 4% 6% 8% US Denmark Nordic average Sweden Norway Finland Source: HUI
  • 18. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 18 Clear Objectives & Priorities – Annual Organic Sales Growth of more than 10% – Operating Profit Margin of more than 20% for Viasat Broadcasting (even excluding associated company income) – Increasing proportion of Emerging Market Sales & Operating Income – Generation of healthy ROE & ROCE – Generation of healthy Total Shareholder Returns
  • 19. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 19 The Lean & Mean Broadcasting Machine • Operationally geared growth company with balanced (advertising & subscription revenues) & diversified (geographically) revenue mix • Driving growth primarily through organic expansion & start-ups • Challenger to incumbents in structurally evolving markets • Successful multi-channel, multi-platform, multi-territory media house model • Efficient integrated operating structure yields competitive advantage & synergies • Investing healthy cash flows from Nordic region into emerging markets • Strict cost control, cash management & capital allocation • Strong & flexible financial position • Delivering enhanced shareholder returns
  • 20. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 20 For further information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +44 7768 440 414 / +44 7791 138 486 Email: investor.relations@mtg.se
  • 21. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 21