130409 mtg at kinnevik cmd 2013 final clean

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130409 mtg at kinnevik cmd 2013 final clean

  1. 1. 1Jørgen Madsen LindemannCEO & PresidentModern Times Group
  2. 2. Entertainment Across The Board5 business segmentsSwedenNorwayDenmarkEstoniaLatviaLithuaniaBulgariaCzech RepublicHungaryGhana• 4 satellite platforms• Virtual operator in3rd party networks• 20 channels • 5 satellite platforms –Baltics, Ukraine & Russia• 19 channels on 3rd partynetworks• 9 Free-TV channelsFree-TVScandinaviaPay-TVNordicFree-TVEmerging MarketsPay-TVEmerging Markets• Radio• Modern Studios +MAPOtherBusinesses2
  3. 3. Integrated GroupWith a Global footprint332 free-TV channels in 10 countriesSatellite pay-TV platforms in 9 countries85 million wholesale channel subscriptionsin 34 countries3
  4. 4. Clear Content LeadershipTV series, movies & premiumsports4Local titles
  5. 5. 5Complementary revenue streamsCyclical & non-cyclical balance0%10%20%30%40%50%60%70%80%90%100%2006 2007 2008 2009 2010 2011 2012Free-TV Scandinavia Pay-TV NordicEmerging Markets42.0%49.0%9.0%AdvertisingSubscriptionB2B / B2CMTG 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. 6. Stable Business ModelWith long-term profitable growth60%5%10%15%20%25%30%35%40%45%50%02,0004,0006,0008,00010,00012,00014,00016,000Revenues EBIT* MarginSEK million• Integrated structure enables Group growth through the whole macroeconomiccycle, with continued strategic content investments• Sales CAGR OF 10% between 2002-2012• EBIT CAGR of 35% between 2002-2012 excluding associated companyincome
  7. 7. Strong Financial PositionIncreasing dividends & net cash701,0002,0003,0004,0005,0006,0007,000Liquid funds (incl. Unused credit facilities) Net debtNet cash position as of Q1 2013 & SEK6.5 billion of available liquid fundsSEK millionIncreasing dividend yield(SEK million)• Reinvesting on organic growthacross our territories• Selective & opportunistic M&Ain Nordic & Emerging markets• Focus on 3 key areas:• Content• Technology• Countries3634986006672010 2011 2012 2013
  8. 8. 8Free-TV
  9. 9. Multichannel Media HousesIn 3 countries90%5%10%15%20%25%30%35%40%45%50%05001,0001,5002,0002,5003,0003,5004,0004,5005,0002008 2009 2010 2011 2012Revenue EBIT EBIT marginSweden0.0%10.0%20.0%30.0%40.0%2011 20120.0%10.0%20.0%30.0%2011 20120.0%10.0%20.0%30.0%2011 2012CSOV % (15-49)NorwayDenmarkCSOV % (15-49)CSOV % (15-49)Financial PerformanceSEK million• #2 position in Sweden & Denmark & #3position in Norway• Advertising sold on a bundled ’Media House’basis with complementary channel positioningdriving incremental reach• Key deals signed with Canal Digital & Boxer toextend reach of TV3 & TV3 PULS in Denmark• 3rd channel to be launched in Norway in 2013
  10. 10. And Emerging Markets PortfolioWith room to grow further10Estonia Latvia** LithuaniaCzechRepublicBulgaria Hungary Ghana RussiaPosition #1 #1 #1 #2 #2 #3 - #4Combinedcommercialaudience share*(targetdemographic)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 bundledbasisYes Yes Yes Yes Yes Yes n/a n/aCath-up services No* FY 2012* * Including LNT channels from Q3 2012*** CTC Network only
  11. 11. Emerging MarketsOperationally geared for recovery11Free-TV Emerging Markets(2012)Czech Republic, Bulgaria, Baltics(2012)-50005001,0001,5002,0002,5002008 2009 2010 2011 2012Revenue EBIT-5%0%5%10%15%20%25%30%02004006008001,0001,2001,4001,6001,8002,0002008 2009 2010 2011 2012Revenue EBIT EBIT marginSEK 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 during2012 & new sales cooperations to expand bundled media house reach from 2013
  12. 12. Digitalisation Changes The GameEven playing field presentsopportunities12Sweden –1 Feb 2008Denmark –1 Nov 2009Norway –1 Dec 2009Scandinavian TV landscape(2011)Cable52%Satellite19%DTT19%IPTV9%Cable 55%Satellite19%DTT 7%AnalogueTerrestrial20%Scandinavian TV landscape(2005)
  13. 13. Opportunities of DigitalisationWe benefit from fragmentation130%10%20%30%40%50%60%70%80%Bonnier MTG SBS132003 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 competitors05101520253035404550TV3 TV4 Kanal 5 MTG TV4 Group SBSFY 2002 FY 2012Commercial audience share(15-49, Sweden)Average Weekly Reach(15-49, Sweden)%
  14. 14. TV Viewing is Expanding OnlineMTG’s core audiences are earlyadapters140%5%10%15%20%25%30%35%40%45%50%ComputerScreenMobile Phone TV-screen Tablet92%83%1%1%16%7%Traditional TV Web-TV Mobile-TVAge 15-24+16%+77%+54%+278%Q1 2011 Q1 2012Age 15-74Viewing Platform Viewing by Device
  15. 15. With Added Revenue Streams& higher pricing levels15-10,000,00020,000,00030,000,00040,000,00050,000,00060,000,0002010 2011 2012 20130501001502002503003504004502010 2011 2012 * 2013* 2014* 2015*Online TV market Growth(Sweden)Number of streams on MTG TVPlay devicesAVOD revenue per viewer and per hour are higher than in traditional linear TVPrice = 2.8x higher online & even higher on mobileSEK million
  16. 16. MTG Already Leading OnlineWe are leveraging our strongtraditional brands1634.80%36.70%Linear OnlineOnline viewing higher than traditionallinear media house audience share(Sweden, FY 2012)Key free-TV brands launched online todrive viewing & strenghtenengagementKey free-TV brands launched online todrive viewing & strenghtenengagement
  17. 17. Making Content Live LongerBy extending product life cycles17Linear On-demandCross-promotion for brands &other formatsEditorial post-showcontent & talentengagementChannel viewers toother IP’s via onlinepresenceIncreased exposure & reachSocial mediaintegrationSecond screendrive engagementExtends product life cycleExtra content Previews & teasers
  18. 18. Exploring New Business ModelsWeb exclusive content18+• Web exclusive AVOD contentproduction• Editorial integration incooperation with keyadvertisers• Drivers consumer sales:+70% during campaign• Absolut Torr now recurringcustomer of TV3 Sweden
  19. 19. And Engaging With Our Viewers19• 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 onFacebook & Twitter• Like.tv second screen companion app presents an opportunity tofacilitate the discourse around TV & connect with the customerSource: The Guardian,: IMRG, Decipher, Harris Interactive, Google, YouGov, Deloitte
  20. 20. 20Pay-TV
  21. 21. Over 25 Years of EvolutionMoving alongside our customers21From one channel in 1987 to 32 free-TV channels, 11 satellite platforms &comprehensive online presence in 2013Channel(Free-TV)Channels + platform(Free-TV + Pay-TV)Channels, platforms &Over The Top
  22. 22. 02004006008001,0001,2001,4002006 2007 2008 2009 2010 2011 2012Q3Premium satellite 3rd party networkA platform agnostic approach22Sources: Viasat Broadcasting researchSatelliteuniverseScandinaviansatellite virtualoperator universe(IPTV, cable)~1.6mhouseholds~4.2mhouseholdsViasat premium subscribers(Nordic)1991 2008 2009 2010 2010 2012
  23. 23. OTT Opens Up a Whole New World& the space is growing rapidly23Satellite Virtual operator Open internet~1.6mhouseholdsVirtual Operator~4.2 millionOTT~9.0 million
  24. 24. Viaplay – Market Leading OfferingOn any device24• 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. 25. Viaplay – Customer FocusHighly rated in consumer tests25Internetworld - Top100Best Entertainment Site 2012: #2”For the biggest selection of movies, chose Viaplay.”- Kritiker.se (extensive test of Viaplay, Netflix and Filmnet)
  26. 26. Expanding Our Service OfferingViagame26• Expanding our offering to encompass other aspects of media• Cross-promotion, sales synergies, relevant customer databases
  27. 27. Exporting the Pay-TV ModelBroad EE, Russia & CIS exposure27272003 2004 2005 2006 2007 2008 2009 2010 2011 2012Countries 7 11 15 22 23 24 25 25 28 34Channels 2 3 5 6 7 8 10 15 19 23Satellite platformsBaltics Ukraine Russia
  28. 28. Popular & Established BrandsMarket leading channel portfolio2828Source: TNS Russia 2012, Screen Digest 2012Top 10 pay-TV channels in Russia (monthlyreach, million people)Share of viewing – Free TV and Viasatchannels (Russia, 25-44*)* Russia 100,000+, 1/1/2012-30/4/2012, 05:00:00 - 29:00:0013.111.310.710.69.55.53.82.82.72.42.01.91.91.91.3048121611.011.912.213.214.115.517.919.420.621.20 10 20 30Dom KinoSony Entertainment TVViasat HistoryNational GeographicEurosportMoya PlanetaAnimal PlanetDiscovery ChannelTV 1000TV 1000 Russian Kino
  29. 29. The next stepHD Channel package & Viaplay29• Four exclusive key premium contentdeals signed in Russia, Ukraine & CIS• New premium HD channel packagelaunched in Russia & Ukraine• Viaplay launched & available to HDcustomers and on independent basisExclusive Premium Content from major Hollywood Studios
  30. 30. Pay-TVInvesting in Growth30Pay-TV Nordic(2012)Pay-TV Emerging Markets(2012)SEK million SEK million• Investments in content & Viaplay online pay-TVplatform to drive growth• Premium satellite ARPU continues to grow dueto 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 &Ukraine0%5%10%15%20%25%30%35%40%45%50%01,0002,0003,0004,0005,0006,0002006 2007 2008 2009 2010 2011 2012Revenue EBIT EBIT margin0%5%10%15%20%25%30%35%40%45%50%02004006008001,0001,2002006 2007 2008 2009 2010 2011 2012Revenue EBIT EBIT margin
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