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120712 2 mtg corporate presentation
 

120712 2 mtg corporate presentation

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    120712 2 mtg corporate presentation 120712 2 mtg corporate presentation Presentation Transcript

    • 1
    • 5 business segments Free-TV Pay-TV Free-TV Pay-TV Other Scandinavia Nordic Emerging Markets Emerging Markets Businesses• 9 Free-TV channels • 4 satellite platforms • 19 channels • 5 satellite platforms – • Radio • Virtual operator in 3 rd Baltics, Ukraine & Russia • Content production party networks • 19 channels on 3 rd party Sweden Estonia networksNorway Latvia LithuaniaDenmark Bulgaria¹ Czech Hungary Introduction Ghana
    • Spanning 4 continents 28 free-TV channels in 10 countries Introduction Satellite pay-TV platforms in 9 countries3 Over 66 million mini-pay subscriptions in 34 countries
    • MTG = Made To Grow Revenues & EBIT Return on capital employedSEK million16,000 30%14,000 27% 34% 24% 31%12,000 29% 29% 21% 25%10,000 18% 21% 21% 8,000 15% 12% 15% 15% 6,000 9% 4,000 6% 6% 2,000 3% 0 0% Revenues EBIT EBIT-margin Introduction 4 Total EBIT excluding discontinued operations and one-offs; ROIC excluding non-recurring items.
    • With a balanced revenue mix Segmental revenue mix 2011 revenue mix100%80% 9%60% 44% 47%40%20% 0% 2006 2007 2008 2009 2010 2011 Free-TV Scandinavia Pay-TV Nordic Emerging Markets Advertising Subscription B2B / B2C• Balanced revenue mix of cyclical advertising sales & linear subscription sales• Unparalleled efficiency due to control of content, packaging, pricing & distribution Introduction5
    • Content remains King MTG TV channels broadcast 472,372 hours of entertainment in 2011 = 20,000 days of programming!Hours broadcast 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 MTG RTL SBS Bonnier CME Mediaset Introduction 6
    • With multiple windows Channel Pay-TV Free-TV SVOD Co-finance Distribution * Introduction7
    • And the industry is changing fast From physical… to digital… to streaming in the ‘cloud’Video Online movie viewership set to more than double in 2012, whilst physical viewing predicted to remain stableMusic Digital music sales accounted for >50% of total worldwide music sales in 2011Print Amazon sold more Kindle books than paperback books in 2011 Introduction 8 8 Source: Screen Digest
    • 9Free-TV Scandinavia
    • More channels available From onechannel in 1987 to over 50 in 2012 SWEDEN DENMARK NORWAY Free-TV Scandinavia Competing for 162 Competing for 198 Competing for 16610 viewing minutes per day viewing minutes per day viewing minutes per day
    • People watching more TV Average Viewing Time per Day (minutes)200 + 50 minutes190180170 + 21 minutes + 5 minutes160150140 Free-TV Scandinavia130 2007 201111
    • Increasing TV’s ad market share Sweden Denmark Norway 20.0% 17.2% 19.5%2008 22.1% 19.2% 20.9%2011 Free-TV Scandinavia12
    • And driving demand levels Market Sold Out Ratios in prime time Market cost per thousand (indexed)100% 120 11095% 10090% 9085% 8080% 7075% 60 Free-TV Scandinavia 2008 2009 2010 2011 2008 2009 2010 201113 Source: MTG research
    • Enabling MTG to close the gap CSOV 15-49 Perceived penetration (not actual) 88% 86%7060 2008 201150 88% 86%4030 2008 201120 66%10 39% 2008 20110 Free-TV Scandinavia 2004 2005 2006 2007 2008 2009 2010 2011 47% 0% 2008 201114 Source: MMS
    • By building the media house Complementary Channel Profiles Average Weekly Reach (15-49) 80% -2% +19% +8% Old & Male Old & Female 70% 60% 50% 40% 30% 20% 10% Young & Male Young & Female 0% Bonnier MTG SBS Free-TV ScandinaviaSource: MMS 2003 2011 15 Source: MMS
    • With more to come Regional share of total advertising Total regional advertising (SEK 15 bn) (NOK / DKK / SEK billion) 15 Print, 63% Direct advertising, 14% 10 5 Internet, 14% 0 Radio, 4% TV, 5% 40% 60% 50% Regional TV advertising (SEK 860 mn) • Number of regional TV3 Sweden broadcast zones increased from 6 to 19 on February 27th 2012 MTG, • Bundled TV, Radio & Internet Ad sales package with 9% dedicated sales force of 120 people as of March 2012 TV4, Free-TV Scandinavia • Local Ad prices as much as 2.13x national prices 84% Other, 7% • Local TV ad market up 22% y/y in 2011, compared to 2.5% y/y growth for total local ad market16 Source: IRM Media, Regional market report,2012 & MTG estimates
    • Best in class growth & marginSEK thousands4,600,000 30%4,400,000 28%4,200,0004,000,000 26% 25.9%3,800,000 24.5% 24%3,600,0003,400,000 22%3,200,000 21.9% 21.2%3,000,000 20% Free-TV Scandinavia 2008 2009 2010 2011 Total revenue Operating margin17
    • A clear market opportunity 150 • GDP growth + Total ad market growth + TV ad market growth 140 • + audience share gains 130 • + channel launches 120 • + penetration gains 110 • + AVOD 100 • + mini-pay 90 80 2008 2009 2010 2011 2012 2013 2014 2015 = long term sustained market outperformance150 150140 140130 130120 120110 110 Free-TV Scandinavia100 100 90 90 80 80 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 18D GDP Growth Total Ad Market Growth TV Ad Market Growth
    • 19Free-TV Emerging Markets
    • Well-positioned Lithuani Czech Estonia Latvia Bulgaria Hungary Ghana Russia a Republic Position #1 #1 #1 #2 #2 #3 - #4 Combined commercial 42.0% 37.2 44.0% 27.7% 28.1% 8.1% 18.8% 16.1% audience share (15-49) (15-49) (15-49) (15-54) (18-49) (18-49) (15-49) (6-54) (target demographic) Catch-up services Yes Yes Yes Yes Yes No No Yes Free-TV Emerging Markets Sold on ’bundled’ Yes Yes Yes Yes Yes Yes N/A N/A basis20
    • With scale operations in key markets Commercial Audience Share Financial performance (SEK million) (Baltics, Czech Republic & Bulgaria) 50% 2,000 30% 25% 40% 1,600 20% 30% 1,200 15% 800 10% 20% 5% 10% 400 0% 0% 0 -5% 2006 2007 2008 2009 2010 2011 2008 2009 2010 2011 Czech Republic (15-54) Revenue EBIT EBIT margin Bulgaria (18-49) Pan-Baltic (15-49) Free-TV Emerging Markets • Clear market leadership in Baltics with >43% pan-Baltic target group share of viewing as advertising spending returned to growth in 2011 • Investments in schedule & new Prima Love channel boosted target audience share in Czech Republic & enabled advertising market share gains in low growth environment in 2011 • Stable combined audience share in Bulgaria but no recovery in advertising spending in 201121
    • And equivalent consumer pricing Shopping list Shopping list BGN EUR Salami 4.79 Salami 3.48 Frozen fish 10.43 Frozen fish 8.55 Coffee 11.82 Coffee 5.34 Chocolate 4.14 Chocolate 2.24 Vodka 23.99 Difference: Vodka 8.91 Shower Gel 2.75 -6.4% Shower Gel 1.39 Detergent 8.46 Detergent 2.8 Powder 15.59 Powder 11.89 81.97 BGN = 41.9 EUR 44.6 EUR Free-TV Emerging Markets Bulgaria Germany22 Source: METRO Cash & Carry monthly catalogues
    • But lower contact cost CPT dynamics (2011) Free-TV Emerging Markets23 Source: MTG research
    • And media spend per capita TV Ad spend per capita (SEK’000, 2011)2.01.81.61.41.21.00.80.60.40.20.0 Free-TV Emerging Markets24 Source: IMF, Zenith Optimedia 2012
    • So the opportunity is clear GDP growth in MTG EM territories Forecast GDP growth in MTG CEE (indexed) territories 600 5.0% 500 4.0% 400 3.0% 300 2.0% 200 100 1.0% 0 0.0% Estonia Latvia Lithuania GDP TV Ad Market MTG Sales Bulgaria Czech Hungary Free-TV Emerging Markets TV Ad market has outperformed Nominal GDP development by a factor of 1.2820 Source: IMF, TNS/MTG estimates
    • Returning market opportunity CEE TV ad markets where MTG is present109 SEK 8.6 billion8 SEK 2.2 billion7 SEK 6.4 billion654321 Free-TV Emerging Markets0 2008 201126 Sources: Zenith Optimedia 2012/MTG Estimates
    • 27Pay-TV Nordic
    • Technology changes behaviour Gatekeeper Virtual OperatorOwned & Operated Viasat Channels in Independent in 3rd Party Satellite Platform 3rd Party Networks Internet Networks Environment Pay-TV Nordic 28
    • Growing viasat…ellite Premium satellite subscribers (000’s) Premium satellite ARPU (SEK)1,000 6,000 5,000 800 4,000 600 3,000 400 2,000 200 1,000 0 0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Value-added services (000’s) Satellite subscription price increases 350 (Nordic) 15% 300 250 12% 200 9% 150 6% 100 50 3% Pay-TV Nordic 0 0% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 2007 2008 2009 2010 2011 Multi-room PVR HD 29
    • A platform agnostic approach Viasat premium subscribers (Nordic) 1 200 1 000 800 600 ~4.2m 400 households ~1.6m 200 households 0 2006 2007 2008 2009 2010 2011Scandinavian Scandinavian DTH satellite 3rd party networks satellite satellite & Virtual universe Operator agreements (IPTV, cable) 1991 2008 2009 2010 2010 Pay-TV Nordic 30 Sources: Viasat Broadcasting research
    • Entertainment at your commandFirst to Market with Full Service‘Over-The-Top’ Solution Mobile Set -Top Box• Anytime Access all services ‘on demand’• Anywhere Tablet Media Players Access subscription online PC/Mac• Any Device Enjoy subscription on multiple devices in and out of home Game consoles Embedded TV Set Applications OTT Set-Top box Pay-TV Nordic31
    • Opens up a whole new universe Satellite Virtual Operator OTT ~1.6 million ~4.2 million ~9.0 million 90% of Swedish households have over 2 MB/s broadband Pay-TV Nordic connection speeds32
    • Best in class performance (SEK million)5,000 50%4,500 45%4,000 40%3,500 35%3,000 30%2,500 25%2,000 20%1,500 15%1,000 10% 500 5% 0 0% 2006 2007 2008 2009 2010 2011 Revenue EBIT EBIT margin Pay-TV Nordic33
    • 34Pay-TV Emerging Markets
    • Expanding horizons 2003 2004 2005 2006 2007 2008 2009 2010 2011Countries 7 11 15 22 23 24 25 25 28Channels 2 3 5 6 7 8 10 15 19Satellite 35 Baltics Ukraine Russiaplatforms
    • Multi-dimensional opportunities Satellite pay-TV households in Cable & IPTV households, Eastern Europe (million) Eastern Europe (2011, million)40 6035 5030 402520 3015 2010 1050 0 Pay-TV Emerging Markets Source: Screen Digest 201236
    • Seizing the Opportunity Viasat satellite subscribers Mini-pay subscriptions (millions) Baltics, Ukraine, Russia (000’s)600 70,000500 60,000400 50,000300 40,000200 30,000100 20,000 0 10,000 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Pay-TV Emerging Markets37
    • Establishing leading positions Share of viewing – Free TV and Viasat Top 10 pay-TV channels in Russia channels (Russia, 25-44*) (monthly reach, million people) 16 13.1 TV 1000 Russian Kino 21.2 11.3 10.7 10.6 12 TV 1000 20.6 9.5 Discovery Channel 19.4 8 Animal Planet 17.9 5.5 Moya Planeta 15.5 3.8 2.8 2.7 4 2.4 2.0 Eurosport 1.9 1.9 1.9 14.1 1.3 National Geographic 13.2 0 Viasat History 12.2 Sony Entertainment TV 11.9 Dom Kino 11.0 Pay-TV Emerging Markets 0 10 20 3038 Source: TNS Russia 2012, Screen Digest 2012 * Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:00
    • To grow with the flow Revenue split Total segment revenue & EBIT 2011 (SEK million) 1000 900 800 700 600 44% 500 400 56% 300 200 100 0 2007 2008 2009 2010 2011 Pay-TV Emerging Markets Satellite Channels Revenue EBIT39 Source: MTG Data
    • 40
    • Cash is king Net operating cash flow Dividends received from CTC Media (SEKm) (SEKm)2,500 100% 140 1202,000 80% 1001,500 60% 80 601,000 40% 40 500 20% 20 0 0% 0 Net operating cash flow % of EBITDA converted Capital allocation 41
    • Enables deleveraging Net Debt Available Liquid Funds(SEKm) (SEKm)5,000 6,0004,000 5,000 4,0003,000 3,0002,000 2,0001,000 1,000 0 0 Capital allocation 42
    • And shareholder returns • Primary focus is on growth and reinvesting cash flow into operations + M&A • Balanced with TSR commitment – reflected in newly adopted policy to distribute at least 30% of recurring net profit as annual ordinary dividend Cash distribution (SEK) 40.00 Buybacks (value per share) 35.00 CDON spin-off 30.00 Extraordinary dividend per 25.00 share 20.00 Ordinary dividend per share 15.00 Net cash flow per share 10.00 EPS adj (excluding one-offs) 5.00 30% of EPS adj (excluding one- Capital allocation 0.00 offs) 2006 2007 2008 2009 2010 201143
    • For Further Information, please visit www.mtg.se or contact: MTG Investor Relations Tel: +46 736 99 29 81/ +44 759 009 8188 Email: investor.relations@mtg.se Nasdaq OMX: ‘MTGA’, ‘MTGB’ Contact information44