Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q2 2016 Earnings Presentation
25 slides from Modern Times Group Mtg Ab Class A's earnings presentation, 2016
Slide 1: Shaping the Future of Entertainment
Slide 2: Record Q2 sales and higher profits
m Free-TV & Radio Vw AUSHOATE ROBES asa 4 ~ eSports & MCN Record Q2 sales & higher profits, with profitable growth for Nordic & International businesses + record Q2 profit for Studios More relevant and available products than ever — on line, on mobile, on demand Executing on strategy to deliver prof
Slide 3: Group: Record sales and EBIT up
Group: Record sales and EBIT up Sales (SEKm) — up 2% on an organic basis EBIT excl. IAC (SEKm) — up 4% QAO one-nnneeeeoneeeecceeceecceececceceecceeeecnsueeeonueeecnsaneeeonneesonsaneeeonnete 500 0) es eee MBO C0) rrr | as C0 QAOO me CCC ee ee Ree eee ee ByQOO ee ne 920 en 3,800 400 Q2 2015 Q2 2016 Q
Slide 4: Cost transformation update
Cost transformation update Cost transformation update (SEKm) * On track & according to plan with total JOO po n-ne nnn estimated savings of ~600m SEK fully 600 | - nnn impacting in 2017 500 * Savings of SEK 100m in Q2 & 200m for H1 400 | ~450m SEK anticipated for FY16 300 * Cash cost for programme o
Slide 5: Outlook for FY16 unchanged
Outlook for FY16 unchanged 1 Higher sales growth 2 Higher EBIT (excl. IAC) Accelerated sales growth to be primarily driven by higher pay-TV prices & digital expansion EBIT up due to operating leverage & cost transformation, and despite incremental FX headwind of SEK 250m, significantly higher sports
Slide 6: A clear and simple story
i yp Into a leading y Managing the And returning | transformation digital value to of a traditional entertainment shareholders broadcaster provider A clear and simple story
Slide 7: Video viewing, minutes per day
Video viewing, minutes per day 2013 2014 2015 Linear TV ® On-demand Source: MTG Research, Mediavision, MMS Demographic: 18-74, all viewing, Sweden
Slide 8: 4 keys to our transformation
” Active portfolio Transforming Changing the ae | \ management the way we buy way we are . : along strategic content organised 6 ang priorities 4 keys to our ‘transformation = FT met 7 Joe eee * a, iy Be 4) wo fh
Slide 9: Transforming into a flexible structure for acquired programming
a s—~ MARVEL Dini ep | Elevision NBC UNIVERSAL ba. gcd ean roup aa = @eCBS BAAS $ scanbox rremantisven sR Camp visacom sterz Transforming into a flexible structure for acquired programming... ...improved monetisation VIASAT vasa Te HD VIASAT! PREMIERE
Slide 10: Active portfolio management (since 2014)
Active portfolio management (since 2014) Hungary Russia Ukraine . Sappa — Zitius —='h« Acquisitions Disposals x
Slide 11: New country organisation and disclosure structure
AY s C o ’ 3 : Fea at Sess —— rrr Save ar, : a . t 3 Have moved from a product to a country organisation... ...and implemented a new disclosure structure... Nordic International Entertainment Entertainment 61% of sales MTGx 20% of sales 8% of sales Based on Q2 2016 results is
Slide 12: Nordic Entertainment
Nordic Entertainment Higher sales (SEKm) N1,000 7 ~~~ === == 2522 n enn n nnn nnn 10,000 9,000 8,000 7,000 6,000 2013 2014 2015 Driven by price and online And higher EBIT (SEKm) O°) 0 0 ae 1,400 1,300 1,200 1,100 1,000 2013 2014 2015 Despite significant FX headwinds SVOD penetration in Sweden 35% 30
Slide 13: International Entertainment
International Entertainment Higher sales (SEKm) EBIT (SEKm) starting to recover © CSOV (%)- unweighted average 4,000 400 7------------------------------- 45 + -------------------------- 350 3,500 40 300 3,000 250 35 2,500 200 30 2,000 180 100 25 1,500 50 1,000 (0) 20 2013 2014 2015 2013 2014 2015 20
Slide 14: Who are millenials' favorite celebrities?
Who are millenials' favorite celebrities? ta & or PewDiePie VanossGaming : , a — Nigahiga Smosh Markiplier Bruno Mars i @ Online star @ Hollywood/Pop star 2 win : ‘Source: Variety, 2015 Taylor Swift The Fine Bros. Jenna Marbles
Slide 15: MCN: Splay and Zoomin.tv
Ee hs fe} * x + é : | 7 ne} } n rete o f = splay net Ss f ie) #1 MCN in the Nordics = FF 2 ee ee ee a : a. Q Targeted at Ae 3 y A = in (©) Millennial audience ZOOMIN #5 MCN in the world
Slide 16: ESL: Professional and Amateur
Professional Seasons 10 Events 100 Thousand fans onsite 90 Million hours viewed 200 Million video sessions 5-7 Key Game Titles All year round content 42 Million hours viewed 150 Million video sessions Amateur Tournaments 12+ Game Titles 60 Thousand tournaments organised 700 Thousand participating pl
Slide 17: eSports ecosystem
Game Developers & Publishers | Microsoft’ | $ $ os > ey Players / Teams League Operators / Distributors Audience Content Producers & Qt You cL0uD9 name JOBEehts International = — - ¥ | | ey aE | Brand Partners & Advertisers Money a> Product Participation o> Content
Slide 18: eSports audience growth
Be o7 Be 14 be im % 125 [oe 199 Fe 1S os ‘ ss 2012-2013 2014 2015F 2016F 2017F 2018F Source:/2016: Repicon ANEITEO, Figures i inM . ‘ a eo | e nusiasts ‘Occasional Viewers people. 4
Slide 19: eSports fans are loyal and willing to spend
4 / * N 4 - eSports >. . : " . : . at LA. Average annual $54 All Sports q ; revenue per Fan Se nt eat eae eSports fans are loyal and willing to spend , uf 4 : ’ " ; ae ‘ ie peal $3.5
Slide 20: Adjust your stereotypes!
— | re ee “Adjust your stereotypes! 65% 50% Have a al Are in the Average Full time Job High Income Income bracket per household 2 s # Total pop: 37% ue =a Total pop: 22% Total pop: $51K Source: US data~Newzoo 2016; Superdata, US Census 2014
Slide 21: ESL events and viewing
200 Thousand visitors J 4 ©) 225 t - j fs fad 5.7 Billion minutes watched \ d
Slide 22: MCN reach: Zoomin.tv and Splay
23,000+ channels 2BN monthly views 16 countries www.zoomin.tv y splay networks 630+ channels 200M+ monthly views 5 countries www.splay.tv
Slide 23: 2009-2015
2009 2010 2011 2012 2013 2014 2015
Slide 24: Digital leadership - SvoD, AVOD, eSports and MCNs
Digital leadership - SvoD, AVOD, eSports and MCNs Content leadership — ground breaking approach Cost leadership - radical cost transformation and major shift in spend Active portfolio management - strict capital allocation focus Profitable growth — and a shareholder friendly approach to dividends
Slide 25: www.mtg.com
www.mtg.com facebook.com/MTGAB twitter @mtgab
Modern Times Group MTG — Q2 2016 Earnings Presentation on 6ix