Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q2 2017 Earnings Presentation
15 slides from Modern Times Group Mtg Ab Class A's earnings presentation, July 2017
Slide 1: Q2 2017 Financial Results
Slide 2: A clear and simple story
Transforming a Into a global traditional digital video national entertainment broadcaster provider A CLEAR AND SIMPLE STORY iA DS OS
Slide 3: 5% organic sales growth & 9% profit growth
5% organic sales growth & 9% profit growth Continued investment into content & digital expansion Accelerated strategic transformation Y Closed divestment of Czech operations Y Increased holding in InnoGames to 51% Y Announced acquisition of Kongregate Y Launched World Boxing Super Series
Slide 4: Sales & EBIT by division
SALES & EBIT BY DIVISION Sales (SEKm) 4400 7 4200 + 4000 - 3800 fae 3600 4- 3400 T T T Sales and EBIT refer to continuing operations MTGx Q2'17 450 7 400 + 350 +- 300 4- 250 +- 200 7- EBIT before IAC (SEKm) 150 NE IE Studios MTGx Q2°17
Slide 5: Nordic Entertainment
NORDIC ENTERTAINMENT Key highlights Organic sales up 8% - Sales up in all 4 markets - Viaplay remains main growth driver - FTV &Radio sales up in all markets driven by higher prices and Viafree EBIT up 15% - Organic growth flowed through to the bottom line and combined with cost transformation savin
Slide 6: International Entertainment
INTERNATIONAL ENTERTAINMENT Key highlights Organic sales up 5% - Strong growth in Bulgaria partly offset by lower sales in Trace - Trace impacted by termination of distribution & event agreements EBIT down 7% - Double-digit profit growth in Bulgaria - Trace impacted by investments in TracePlay & bad
Slide 7: MTG Studios
MTG STUDIOS Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 1% - Good demand for scripted drama - Offset by weakness in the non- scripted production market EBIT down - Q216 included significant contribution from the sale of Strix formats Great story-telling experiences - Nobel won Golden Ny
Slide 8: MTGx
MTGx Key highlights Sales (SEKm) EBIT (SEKm) Sales up 70% 700 7 - Full consolidation of InnoGames from 1 May 600 4 - Organic growth of 3% reflected events 500 4 calendar and lower sales for Zoomin 400 4 EBIT loss of SEK 53m vs. 48m in Q216 - Included SEK 36m contribution from 300 + InnoGames and Kon
Slide 9: Esports event seasonality
ESPORTS EVENT SEASONALITY Q?r16 2016 Q216 Q3"16 Q416 MEGA EVENTS EXTREME MASTERS (ated oeteRs eae TAIPEI KATOWICE & LEIPZIG * On-going leagues withlive-event finals es MANILA FRANKFURT BREAMHaAcK SUMMER JONKOPING est PRO LEAGUE DUISBURG SUMMER LONDON EXTREME MASTERS SHANGHAI COLOGNE VALENCIA GAMESCO
Slide 10: Esports event seasonality
ESPORTS EVENT SEASONALITY 2017 — Significantly weighted towards H2 Q?’17 Q217 Q3"17 Q417 e iiteD EXTREME 2 cin (os GENTING KATOWICE COLOGNE NEW YORK —_ HAStEns FASES = co SYDNEY HAMBURG OAKLAND EXTREME FASES os LAS VEGAS SHANGHAI MALMO SheaNHacK BREAMHACK | cacaMHack GREAMHACK — GREAMHACK Ee « BREAM
Slide 11: Sales & EBIT by type
4500 4000 3500 3000 SALES & EBIT BY TYPE Sales (SEKm) EBIT before IAC (SEKm) 1 400 4 350 + 300 +- pol 4246 za9 3718 250 }~ 200 Q2'16 Organic FX Acquisitions Divestments Q217 Q216 Organic Acquisitions Divestments Q217 For continuing operations. Organic EBIT includes FX translation & transaction effec
Slide 12: Cost transformation update
COST TRANSFORMATION UPDATE On track & according to plan with total estimated savings of ~SEK 600m fully impacting in 2017 Incremental savings of ~SEK 30m in Q2, taking the run-rate to SEK 555m Cash flow impact from restructuring of ~SEK 10m in Q2, taking the total so far to SEK 480m Expect total cas
Slide 13: Leverage
LEVERAGE Net debt (SEKm) Net debt to 12m trailing EBITDA before [AC Oy pence nrencanneenenennemennnn 2,0 f 1,5 4 Dy een 0,5 prvi eeennenneneeneneanena 0,0 T T T T 1 Q116 Q216 Q316 Q416 Qri7 Q2'17 Qr16 Q2'16 Q316 Q416 Qari? Q217
Slide 14: 5% organic sales growth & 9% profit growth
5% organic sales growth & 9% profit growth Stronger products than ever before following continued digital and content investments Accelerated strategic transformation Full year outlook Higher sales & profits for continued operations Higher sales & profits for Nordic Entertainment First quarterly pro
Slide 15: es ope
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Modern Times Group MTG — Q2 2017 Earnings Presentation on 6ix