Boris Podolsky, CFO of CTC Media, presented on delivering shareholder value at the 2011 Capital Markets Day. CTC Media has achieved exceptional profitability with OIBDA margins above 35% through a stable cost structure and investing in programming. The company generates strong cash flow, converts over 70% of OIBDA to cash, and intends to increase dividends while also returning cash through acquisitions. Management incentives are aligned with shareholders through an emphasis on long-term equity incentives tied to performance. For full-year 2011, CTC Media expects around 20% revenue growth and an OIBDA margin of 34-36%.
Electrolux Capital Markets Day 2012 - Presentation Alberto ZanataElectrolux Group
Electrolux Capital Markets Day. November 14, 2012, Stockholm, Sweden. Together with senior management, the President and CEO of Electrolux, Keith McLoughlin will present the Group’s strategy to create further sustainable economic value at today’s capital markets day.
Optimum ventures - Bevo Agro - Take Private ProposalBen Cappellacci
This is a preliminary round presentation deck for the UBC Finance Club Pacific Venture Capital Competition. It was created by Ben Cappellacci, Chris Fenn, Raena Kai and Scott Redwood.
Mobile Payments and Mobile Commerce
# Market overview
# Competitive landscape
# Region analysis
# Value chain
As of September 2012
Sources: Gartner, Euromonitor, Mashable, Arthur D. Little, mobilepaymentstoday.com, Sapient Nitro, internetretailer.com, deltapartnersgroup.com, paymentobserver.com
Two models for eresearch practice and service - NZ eResearch Symposium 2011Peter Hicks
This presentation at NZ eResearch Symposium 2011describes two models for understanding eResearch as practice and engaging researchers.
The models are implemented at Curtin University through the eResarch Toolbox and the eResarch Project Centre.
Electrolux Capital Markets Day 2012 - Presentation Alberto ZanataElectrolux Group
Electrolux Capital Markets Day. November 14, 2012, Stockholm, Sweden. Together with senior management, the President and CEO of Electrolux, Keith McLoughlin will present the Group’s strategy to create further sustainable economic value at today’s capital markets day.
Optimum ventures - Bevo Agro - Take Private ProposalBen Cappellacci
This is a preliminary round presentation deck for the UBC Finance Club Pacific Venture Capital Competition. It was created by Ben Cappellacci, Chris Fenn, Raena Kai and Scott Redwood.
Mobile Payments and Mobile Commerce
# Market overview
# Competitive landscape
# Region analysis
# Value chain
As of September 2012
Sources: Gartner, Euromonitor, Mashable, Arthur D. Little, mobilepaymentstoday.com, Sapient Nitro, internetretailer.com, deltapartnersgroup.com, paymentobserver.com
Two models for eresearch practice and service - NZ eResearch Symposium 2011Peter Hicks
This presentation at NZ eResearch Symposium 2011describes two models for understanding eResearch as practice and engaging researchers.
The models are implemented at Curtin University through the eResarch Toolbox and the eResarch Project Centre.
Exposición de Guido Vildozo Méndez, con con motivo de la Reunión Nacional de Concesionarios de ACARA, viernes 17 de Junio, Salón Ceibo del Predio Ferial “La Rural”.
Exposición Ventas globales y tendencia (con impacto al evento en Japón)
Ventas regionales (flujo de vehículos entre Brasil, Argentina y México)
Tendencias de los mercados (Brasil - Argentina) para los próximos 10 años
3. High Levels of Cash Conversion
200 84% 90%
180 72% 80%
67% 186 186
160 66% 63% 70%
140 158
60%
120 133 50%
US$ mln
100 117
40%
80
60 30%
40 20%
20 10%
0 0%
2006 2007 2008 2009 2010
Operating Cash Flow % of OIBDA converted
Over 70% of OIBDA is converted to cash flow
2
4. Investing in Business Development and Returning Cash to Shareholders
450 419
400
350
$515 mln of net acquisitions
300
of businesses since 2006
250
186 186
200 CapEx of 2.5% of revenues
US$ mln
158 133
150 117 134 on average annually
100
40 42 Dividends of $ mln in 2010
$80
50 26
0
2006 2007 2008 2009 2010
Dividends Acquisitions
CapEx Operating Cash Flow
Intention to pay $100 million in cash dividends in 2011
3
5. Expanding Distribution Network to Drive Advertising Revenue Growth
Net acquisitions of regional stations in Russia
$97 million of net regional
40 35
35
stations acquisitions since 2006
q
30
25 22 27 stations acquired
US$ mln
20 15
14
15 11
Added over 500 affiliates
10
5
0 4 0
3 5
3 0
2 5 2
5
3
2 0 1
1 5 1
1 0
5
0
0 6
2 0 0
2 8
0
2 0 0
2 9 1
0
2
c
A is
u
q s
n
tio e
fr
o a
n
io
g ta
ls ,
s
n
io to
e
n s
a
fc q
c
a
h r
d
ie
u
2006 2007 2008 2009 2010
+0.8 pp +0.1 pp +3.2 pp +3.0 pp
Technical + $100 mln in
$
penetration +6.6 pp +6.2 pp +5.4 pp +5.2 pp advertising
growth, y-o-y* revenues
+6.6 pp +7.4 pp +4.1 pp
* 2007: CTC + Domashny
2008-2010: CTC + Domashny + DTV
Technical penetration translates into additional revenue
4
6. Stable Cost Structure…
Costs as % of revenue* Costs as % of total operating expenses*
OIBDA
Margin*
46.9% 46.7% 43.8% 41.7% 36.7%
70%
66%
61% Other 20% 16% 18% 20%
58% 59% 58% 22%
60% 13%
11% 8% 6%
9% 8% 6%
12% 13% 3% 7% 5% 4% 4%
50% 2%
3% 4% Advertising and 6% 5%
3% 3% 4% 4% 13% 13% 11%
5% 4% 8% promotion 12% 11%
40% 7% 8%
7% 6%
30% General &
administrative
20% 39% 55% 59% 58% 59%
34% 35% 55%
32% 33% Salaries and
10% benefits
0%
Amortization of
2006 2007 2008 2009 2010 programming rights 2006 2007 2008 2009 2010
(*) Excluding non-recurring items
…and up to 50% of variable costs
5
7. Investing in Programming to Drive Long-Term Audience and Revenue Growth
Long-
Target aud.
g Target aud.
g
share 12.9% 11.3% 11.8% 12.2% 11.9% 100
share 1.8% 2.2% 2.1% 100%
700 100%
600
80% 80 80%
Ad revenue
500
493 60% 60 60%
400 425 49 Amortization of
US$ mln
US$ mln
399 369 progr. rights
300
327 40% 40 40%
41 44
U
200 Amortization of
20% 20 20% progr. rights/Ad
100 173 172 28 revenue
125 139
99 16 14
0 0%
0 0%
2006 2007 2008 2009 2010
2008 2009 2010
Target aud.
120 1.3% 2.4% 2.8% 2.8% 3.1% 100%
share
100
80%
80
78 76 60%
US mln
60
59
S$
54 40%
40
30
20%
20
32 33
23 25
16
0 0%
2006 2007 2008 2009 2010
6
8. Rising Shareholder Returns
450%
400% +350%
CTC Media
350%
300%
250% +213% RTS Index
200%
150%
+70% Nasdaq
100% Composite
p
50% +24%
0% MSCI Europe
Media
-50%
CTC Media significantly outperforms country and industry indices
7
9. Management Incentive Program Aligned with Shareholders’ Interests
Short-Term Long-Term
Cash Equity
Incentives
I ti Incentives
I ti
Corporate targets Performance-based
P f b d
2010: options KPIs 2010:
• OIBDA margin • Revenue growth above
• Total revenues Russian TV ad market
• Audience share growth
th
• MSCI European Media
Index outperformance
• ROCE
Functional targets
Time-based options:
• 4 years
Project targets • 25% vesting annually
Long-
Long-term equity incentives represent over 80% of the fair value of the top
g y
management annual compensation
8
10. To Conclude…
OIBDA margin exceptional by industry standards
Strong cash generation and low CapEx requirements
Investments in the development of th b i
I t t i th d l t f the business remain th priority
i the i it
Intention to increase dividends in absolute terms annually in absence of large scale M&A
High return on capital employed
g p p y
Strong balance sheet with no debt ($177 mln net cash position at December 31, 2010)
Commitment to deliver superior shareholder returns
9
11. Full-
Full-Year 2011 Outlook
Approximately 20% total operating revenues growth in ruble terms*
OIBDA margin of 34%-36%
Capital expenditures (excluding acquisitions) of $25 million
* (when adjusting the 2010 revenues for the commission payable to Video International for
direct sales of CTC Media’s advertising inventory in Russia)
10