2. THE STORY
A SUCCESSFUL TRACK
RECORD (10Y)
A UNIQUE PLATFORM
A BRIGHT FUTURE
INTEGRATED &
DIVERSIFIED
RISING VIDEO
CONSUMPTION
27% ROCE (AV)
TV EVERYWHERE &
FOR EVERYONE
CONTENT RICH
17% TSR CAGR
DECENTRALIZED
11% SALES CAGR
13% EBIT CAGR
DIGITAL DELIVERY &
ENGAGEMENT
2
3. LONG TERM VALUE CREATION
BASED ON CLEAR GROWTH STRATEGY
CONTENT
DIGITAL
GEO EXPANSION
Multi-platform & country content
acquisition & monetization strategy
Leading content creator, producer &
distributor
First to market full service SVOD
OTT operator & leading AVOD player
+ wide range of new products &
services
Focus on roll-out of new products to
existing markets + expansion in CEE
& Africa
3
4. CONTENT REMAINS KING
WE ARE THE BIGGEST BUYER IN TOWN
TOTAL NUMBER OF BROADCAST HOURS (2013)
1,000,000
900,000
879,470
800,000
700,000
600,000
481,800
500,000
394,200
400,000
297,840
300,000
236,520
210,240
CME
Pro7
200,000
100,000
0
MTG
RTL
Bonnier
Mediaset
Source: MTG Research
4
6. OUR IN-HOUSE STUDIOS BUSINESS
HAS QUADRUPLED IN SIZE
TOP 5 TV PRODUCERS IN THE NORDICS
(BY SALES 2012)
TOP 10 CONTENT DISTRIBUTORS
(RATED BY UK INDEPENDENT TV PRODUCERS)
HIGHEST RATED
1
BBC WW
1
BBC WW
2
ITV Global
2
DRG
3
DRG
3
Zodiak Rights
3
Zodiak Rights
4
ITV Global
3
Shine
5
Fremantle Enterprises
6
Fremantle Enterprises
6
Endemol WW
6
Endemol WW
7
Electric Sky
6
DCD Media
8
Passion Distribution
6
+
MOST USED
All3Media
9
All3Media
10
Passion Distribution
9
Sky Vision
Source: Televisual Distributor Poll, September 2013
#1 IN THE NORDICS WITH AN EXPANDING EMERGING MARKETS FOOTPRINT
AND GLOBAL DISTRIBUTION CAPABILITY
6
8. VIDEO CONSUMPTION IS GROWING
VIDEO USAGE IN THE USA – AVERAGE MINUTES PER DAY PER USER (2+)
ONLINE/MOBILE VIDEO
ONLINE VIDEO
MOBILE VIDEO
296
297
306
307
314
314
+17%
CAGR
ONLINE/MOBILE
VIDEO
0.4%
CAGR
TRADITIONAL
TRADITIONAL TV
LIVE TV
TIME SHIFTED TV
Q3 ‘08
Q3 ‘09
Q3 ‘10
Q3 ‘11
Q3 ‘12
Q3 ‘13
SOURCE: Nielsen Cross Platform reports
8
10. DEVELOPING FAST
WITH A WIDE RANGE OF DIGITAL PRODUCTS
ViaPlay Premium VOD
TV, Movies and Sports
Free VOD TV Channels
Ad Financed Services
Free VOD Sport Clips
Ad Financed Service
Free Music Streaming
Ad Financed Service
Mobile TV Companion
2nd Screen Application
Download Games Store
Transaction Service
Klipster Coupon Service Online
to Store App
Vertical video content sites
style, family, food, cool etc.
10
11. MTGX - THE GROUP PLATFORM
TO ACCELERATE DIGITAL GROWTH
xPLAY
xVENTURES
xCREATIONS
xLABS
Viaplay
TV play
Sports
Music
Games
Like.TV
Mobisodes
Webisodes
TV extensions
Web / Apps
Social
Sign-on
(World class VOD)
(Build portfolio of services)
(Digital first productions)
(Digital development)
11
12. RUSSIA - HUGE POTENTIAL
DIGITAL DECISION TIME FOR 150 MILLION RUSSIANS
38% OWNERSHIP IN CTCM
EUROPE'S BIGGEST TV AD MARKET IN 2015
OWN 5 OUT OF TOP 20 PAY CHANNELS
INCLUDING TOP 2
MORE THAN 60 MN SUBSCRIPTIONS
HD PREMIUM PACKAGE ROLL-OUT
12
13. AFRICA - THE NEXT BIG THING
SSA = 7/10 FASTEST GROWING ECONOMIES 2011-15
FREE-TV CHANNELS IN GHANA &
TANZANIA
PAY-TV CHANNELS NOW AVAILABLE
IN 6 COUNTRIES
ESTABLISHED CONTENT
PRODUCTION PLAYER
13
15. Q4 2013 – HIGHLIGHTS
Accelerated growth for 5th consecutive quarter - sales up 14% at constant FX & 6% on an organic basis
Free-TV Scandi – audience shares up in all 3 markets & 2nd consecutive quarter with sales growth
Free-TV Emerging Markets – continued strong growth in soft market conditions with further investments
Pay-TV Nordic – net subscriber growth, rising prices & operating margin within the range
Pay-TV Emerging Markets – volume growth & profitability above expectations
Studios – organic + M&A led growth with rising profitability levels
Proposed annual ordinary cash dividend of SEK 10.50 = record high pay-out ratio of 56% excl. non-recurring items
15
18. FREE-TV SCANDINAVIA
AUDIENCE SHARE GAINS IN ALL THREE MARKETS
CSOV (15-49) – Q4 2013 VS Q4 2012
35.0
CSOV (15-49) – 2006 TO 2013
40
31.5 31.8
30.0
25.2
25.0
20.6
20.0
16.7 16.9
35
30
25
15.0
20
10.0
15
5.0
10
0.0
Sweden
Q4 2012
Norway
Denmark
Q4 2013
2006
2007
Sweden
2008
2009
2010
Denmark
2011
2012
Norway
CONTINUED STRONG PERFORMANCE IN DENMARK - HIGHEST Q4
CSOV SINCE 2000
18
2013
19. FREE-TV EMERGING MARKETS
CONTINUED STRONG GROWTH
18% SALES GROWTH (Y-O-Y) AT CONSTANT FX
EBIT (SEK MN) AND EBIT MARGIN (%)
150
35%
20%
30%
15.4%
25%
15%
100
10.6%
20%
10%
15%
50
10%
5%
5%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
-5%
Q3 2011
0%
0
0%
Q4 2012
Q4 2013
EBIT
EBIT margin
PROFITABILITY IMPACTED BY PROGRAMMING
INVESTMENTS AND ENTRY INTO TANZANIA
19
20. FREE-TV EMERGING MARKETS
AUDIENCE SHARE GAINS IN ALMOST ALL MARKETS
CSOV (15-49) – (%)
60
50
48.5
TV AD MARKETS IN MTG TERRITORIES
51.8
40
34.1
36.9
39.1
34.1
30
20
10
0
Baltics
Bulgaria
Q4 2012
10
9
8
7
6
5
4
3
2
1
0
Czech Rep.
SEK
8.6 bn
2008
SEK
5.3 bn
2013e
Q4 2013
SEK 3.3 BN OR 60% GROWTH POTENTIAL IF WE
SEE A FULL RECOVERY IN THE TV AD MARKET
20
22. PAY-TV NORDIC
SUBSCRIBER GROWTH + RISING PRICES
PREMIUM SUBSCRIBER DEVELOPMENT (‘000)
ARPU FOR PREMIUM DTH (SEK) - ANNUALIZED
1,200
5,200
1,000
5,000
800
4,800
600
4,600
400
Satellite subscribers
3'rd party network subscribers
Q4 2013
Q3 2013
Q2 2013
4,200
Q1 2013
0
Q4 2012
4,400
Q3 2012
200
4,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2011 2012 2012 2012 2012 2013 2013 2013 2013
GOOD SUBSCRIBER GROWTH FOR VIAPLAY AND 3RD PARTY. DTH DOWN AS
ANTICIPATED. OVERALL BASE CONTINUES TO GROW
22
23. PAY-TV EMERGING MARKETS
OUT-PERFORMING EXPECTATIONS
20% SALES GROWTH (Y-O-Y) AT CONSTANT FX
EBIT (SEK MN) AND EBIT MARGIN (%)
25%
80
70
60
50
40
30
20
10
0
20%
15%
10%
5%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
0%
20%
15.9%
15%
10%
5%
1.9%
0%
Q4 2012
Q4 2013
EBIT
EBIT margin
Q4 INCLUDED SOME POSITIVE ONE-OFFS. NO CHANGE TO THE EXPECTATION
FOR RISING PROFITABILITY LEVELS IN 2014
23
24. PAY-TV EMERGING MARKETS
CONTINUED STRONG SUBSCRIPTION GROWTH
SUBSCRIBERS / SUBSCRIPTIONS (‘000)
INVESTING INTO THE HD MARKET IN THE CIS
100
90
80
70
60
50
40
30
20
10
0
700
600
500
400
300
200
100
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mini-Pay subscriptions (million)
DTH ('000)
395
RUB
($13)
=
ADDED >8 MILLION MINI-PAY SUBSCRIPTIONS
SINCE LAST YEAR TO A TOTAL OF 92 MILLION
24
25. MTG STUDIOS, MTGX, RADIO
STUDIOS DRIVES GROWTH
Organic + M&A led sales growth
M&A growth from acquisition & consolidation
Entertainment (Nov), DRG & Novemberfilm (Jun)
Oct-Dec
Oct-Dec
Sales (SEKm)
593
316
89%
-29%
Growth (organic)
13%
n/a
11
0
1.9%
0.0%
Radio sales stable in Norway & down in Sweden
2012
13% organic sales growth driven by MTG Studios
2013
Growth (at constant FX)
of
Nice
OpEx up, Profits up
Healthy profitability in MTG Studios and Radio Norway
Reduced losses in Radio Sweden after cost savings
Ongoing investment by MTGx to accelerate digital development –
Splay & Net Info are two examples of exciting new areas
EBIT (SEKm)
EBIT margin
25
26. STUDIOS NOW A SCALE PLAYER
PRODUCTION
HOUSE
Sweden
Norway
Denmark
Holland
Hungary
Bulgaria
Slovenia
Romania
Serbia
Czech Rep.
Costa Rica
Latvia
Estonia
Lithuania
SALES OF SEK1.7BN (2012 PROFORMA), PRODUCING >3,500H
OF CONTENT SOLD TO >80 COUNTRIES
26
27. Q4 2013 – SUMMARY
STRONGER PRODUCTS. HIGHER GROWTH
PRODUCTS & CONSUMER OFFERINGS STRONGER, MORE RELEVANT & MORE
AVAILABLE THAN EVER
AUDIENCE SHARE GAINS & SUBSCRIBER GROWTH IN ALMOST ALL MARKETS
CLEAR FOCUS ON STRATEGIC GROWTH DRIVERS – CONTENT, DIGITAL,
GEOGRPHICAL EXPANSION
ACCELERATING ORGANIC GROWTH BOOSTED BY M&A
RECORD HIGH PAY-OUT RATIO & FINANCIAL FIREPOWER
27
28. MTG INVESTOR RELATIONS
FOR FURTHER INFORMATION, PLEASE VISIT
WWW.MTG.SE OR CONTACT:
TEL: +46 (0) 73 699 2714
EMAIL: INVESTOR.RELATIONS@MTG.SE
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