Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q3 2016 Earnings Presentation
14 slides from Modern Times Group Mtg Ab Class A's earnings presentation, 2016
Slide 1: Q3 2016 Financial Results
Slide 2: Managing the transformation into a leading digital entertainment provider
Managing the Into a leading transformation digital video of a traditional entertainment broadcaster provider Aclear & eee story bc S|. as po SS 2
Slide 3: Record Q3 sales & 7% organic growth
* Record Q3 sales & 7% organic growth is highest since Q2 2011 * As anticipated, investments in content and MTGx, as well as FX impact & disposal of profitable businesses, result in lower reported EBIT ¢ Unchanged FY16 outlook for accelerated sales growth & higher operating profits implies strong Q4
Slide 4: Sales & EBIT by division
Sales & EBIT by division Sales (SEKm) EBIT (SEKm) Kole 4,200 pom mn mn nn nnn 426 950 240 4,000 ---------- - i ---------- -- - — 200 | | 3,819 | L 3800 $600 cece nee e nee ene eee eee L 150 100 + 3,600 + 50 {0 -- ~~~ 3,400 1 + 1 1 + 1 ° . ‘ Q315. NE MTGx IE Studios Central Q3'16 Q3"15 NE IE Studios
Slide 5: Nordic Entertainment
Nordic Entertainment Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 11% - highest since 3,000 ~ =~ == on nnn nnn nnn nnn nnn nnn nnn nnn 400 m= Q410 & driven by: 350 | ------------ =e - Viaplay subs & prices 2,500 | ~~ _ - New distribution deals 300 7 - - Olympics in Sweden 2,000 | 250 ||
Slide 6: International Entertainment
International Entertainment Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 8% driven by: 1,000 pon neem 5 - Healthy growth in all FTV ops - Bulgaria & Czech Rep delivered 800 -----m-------------------- 40 |--------------------5 oo double digit growth sage 600 - 30 + EBIT up significantly:
Slide 7: MTG Studios
MTG Studios Key highlights Sales (SEKm) EBIT (SEKm) Organic sales down 6% driven by: 600 ooo nnn nnn nen neem n eee n nena nnn i eae - Timing differences in drama production schedules 500 +--+ 40 }----------------------------------- - Slowdown in Norwegian events ao0 | management market 30 | Lege 30
Slide 8: MTGx Key highlights
Key highlights Sales up ~35% on a pro forma basis - >40% growth in esports Higher EBIT loss: - Continued investments in esports in particular - Includes part of M&A costs relating to acquisition of InnoGames Remaining M&A costs of ~SEK 20m will be taken in Q4 Ongoing investments in infrastructure to
Slide 9: Sales & EBIT by type
Sales & EBIT by type Sales (SEKm) EBIT (SEKm) 4,400 p------- 2-22 eee ene nee ence een 300 7 4,200 +--------------2-202 eo | | ae 250 7 _— 200 4 4,000 +--------| 0) ---------- 222-22 e eee ee eee . 3,819 150 + 3,800 4 7 100 $e $600 fn nen nnn 50 fen nn nn eneeeeeeeeeeeeeeeeeeeee 3,400 : : : : : : to
Slide 10: Cost transformation update
Cost transformation update * On track & according to plan with total Cost transformation (SEKm) estimated savings of ~SEK 600m fully JOO penn impacting in 2017 ee * Savings of SEK 110m in Q3 & SEK 310m for 9m 500 +} ---------------------- ~~~ ~~ ype == with ~SEK 140m anticipated in Q4 400 | * Cash f
Slide 11: Leverage
Leverage Net debt (SEKm) Net debt to 12m trailing EBITDA before IAC 2.0 pane nn nnn nnn nnn nnn nnn nnn nner 0.0 a QI G2 Q3 Q4 QI G2 Qs Q4 QI Q2 QB Q1 G2 Q3 G4 Qt G2 QB _Q4 Qt QZ QZ 4°14 14 14 15 15 15 15 16 16 16 4°14 14 14 15 15 15 15 16 16 16 nl
Slide 12: Unchanged outlook for FY16
Unchanged outlook for FY16 Accelerated sales growth Higher EBIT (excl. IAC) Accelerated sales growth driven by higher Nordic pay-TV prices & volumes and MTGx expansion EBIT up as operating leverage & cost transformation benefits outweigh negative FX & investments in content and MTGx 12
Slide 13: Record Q3 sales & 7% organic growth – highest in >5 years
Record Q3 sales & 7% organic growth — highest in >5 years Profits down as anticipated due to investments into content and MTGx, adverse FX, and disposal of profitable businesses Unchanged outlook for FY16 accelerated sales growth & higher operating profits implies strong Q4 performance Strategic tra
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Modern Times Group MTG — Q3 2016 Earnings Presentation on 6ix