Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Modern Times Group — Investor Day (April 2013)
30 slides from Kinnevik Ab Class A's investor day presentation, Apr 24, 2013
Slide 1: Jørgen Madsen Lindemann, CEO & President, Modern Times Group
Jørgen Madsen Lindemann CEO & President 1 Modern Times Group
Slide 2: Entertainment Across The Board
Entertainment Across The Board 5 business segments Free-TV Pay-TV Free-TV Pay-TV Other Scandinavia Nordic Emerging Markets Emerging Markets Businesses • 9 Free-TV channels • 4 satellite platforms • 20 channels • 5 satellite platforms – • Radio • Virtual operator in Baltics, Ukraine & Russia • Modern
Slide 3: Integrated Group With a Global Footprint
Integrated Group With a Global footprint 32 free-TV channels in 10 countries Satellite pay-TV platforms in 9 countries 85 million wholesale channel subscriptions 3 3 in 34 countries
Slide 4: Clear Content Leadership
Clear Content Leadership TV series, movies & premium sports Local titles 4
Slide 5: Complementary Revenue Streams
Complementary revenue streams Cyclical & non-cyclical balance • 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 • B
Slide 6: Stable Business Model
Stable Business Model With long-term profitable growth SEK million 16 000 50% 14 000 45% 40% 12 000 35% 10 000 30% 8 000 25% 6 000 20% 15% 4 000 10% 2 000 5% 0 0% Revenues EBIT* Margin • Integrated structure enables Group growth through the whole macroeconomic cycle, with continued strategic content
Slide 7: Strong Financial Position
Strong Financial Position Increasing dividends & net cash Net cash position as of Q1 2013 & SEK 6.5 billion of available liquid funds • Reinvesting on organic growth SEK million across our territories 7 000 6 000 • Selective & opportunistic M&A 5 000 4 000 in Nordic & Emerging markets 3 000 2 000 •
Slide 8: Free-TV
8 Free-TV
Slide 9: Multichannel Media Houses
Multichannel Media Houses In 3 countries Sweden CSOV % (15-49) Financial Performance 40,0% SEK million 30,0% 5 000 50% 20,0% 4 500 45% 4 000 40% 10,0% 3 500 35% 0,0% 3 000 30% 2011 2012 2 500 25% 2 000 20% 1 500 15% Norway 30,0% CSOV % (15-49) 1 000 10% 500 5% 20,0% 0 0% 2008 2009 2010 2011 2012 10,
Slide 10: Emerging Markets Portfolio
And Emerging Markets Portfolio With room to grow further Czech Estonia Latvia** Lithuania Bulgaria Hungary Ghana Russia Republic Position #1 #1 #1 #2 #2 #3 - #4 Combined commercial 39.6% 61.1% 42.3% 38.7% 29.5% 8.6% n/a 11%*** audience share* (15-49) (15-49) (15-49) (15-54) (18-49) (18-49) (15-49) (
Slide 11: Emerging Markets
Emerging Markets Operationally geared for recovery Free-TV Emerging Markets Czech Republic, Bulgaria, Baltics (2012) (2012) SEK million SEK million 2 500 2 000 30% 1 800 25% 2 000 1 600 1 400 20% 1 500 1 200 15% 1 000 1 000 10% 800 500 600 5% 400 0% 0 200 2008 2009 2010 2011 2012 0 -5% -500 2008 200
Slide 12: Digitalisation Changes The Game
Digitalisation Changes The Game Even playing field presents opportunities Scandinavian TV landscape (2011) IPTV 9% DTT 19% Scandinavian TV landscape Norway – (2005) 1 Dec 2009 Denmark – Cable 1 Nov 2009 Satellite Sweden – 52% Cable 55% 19% 1 Feb 2008 Satellite 19% DTT 7% Analogue Terrestrial 20% 12
Slide 13: Opportunities of Digitalisation
Opportunities of Digitalisation We benefit from fragmentation • 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 competitors Commercial audience share Average We
Slide 14: TV Viewing is Expanding Online
TV Viewing is Expanding Online MTG’s core audiences are early adapters Viewing Platform Viewing by Device Age 15-74 50% 7% 1% +16% 45% 40% 35% 92% 30% 25% Age 15-24 +77% 20% 1% 16% 15% +54% 10% +278% 5% 83% 0% Computer Mobile Phone TV-screen Tablet Screen 14 Q1 2011 Q1 2012 Traditional TV Web-TV Mob
Slide 15: With Added Revenue Streams
With Added Revenue Streams & higher pricing levels Online TV market Growth Number of streams on MTG TV (Sweden) Play devices SEK million 450 60 000 000 400 50 000 000 350 300 40 000 000 250 30 000 000 200 150 20 000 000 100 10 000 000 50 0 - 2010 2011 2012 * 2013* 2014* 2015* 2010 2011 2012 2013 AVO
Slide 16: MTG Already Leading Online
MTG Already Leading Online We are leveraging our strong traditional brands Online viewing higher than traditional Key free-TV brands launched online to linear media house audience share drive viewing & strenghten (Sweden, FY 2012) engagement 36,70% 34,80% Linear Online 16
Slide 17: Making Content Live Longer
Making Content Live Longer By extending product life cycles Extends product life cycle Extra content Previews & teasers Linear On-demand Increased exposure & reach Social media Second screen integration drive engagement Cross-promotion for brands & other formats Editorial post-show Channel viewers t
Slide 18: Exploring New Business Models
Exploring New Business Models Web exclusive content • Web exclusive AVOD content production • Editorial integration in + cooperation with key advertisers • Drivers consumer sales: +70% during campaign • Absolut Torr now recurring customer of TV3 Sweden 18
Slide 19: And Engaging With Our Viewers
And Engaging With Our Viewers • 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 viewer
Slide 20: Pay-TV
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Slide 21: Over 25 Years of Evolution
Over 25 Years of Evolution Moving alongside our customers From one channel in 1987 to 32 free-TV channels, 11 satellite platforms & comprehensive online presence in 2013 Channel Channels + platform Channels, platforms & (Free-TV) (Free-TV + Pay-TV) Over The Top 21
Slide 22: A platform agnostic approach
A platform agnostic approach Viasat premium subscribers (Nordic) 1 400 1 200 1 000 800 600 400 ~1.6m ~4.2m households 200 households 0 Satellite Scandinavian 2006 2007 2008 2009 2010 2011 2012 universe satellite virtual Q3 operator universe Premium satellite 3'rd party network (IPTV, cable) 1991 200
Slide 23: OTT Opens Up a Whole New World
OTT Opens Up a Whole New World & the space is growing rapidly ~1.6m Virtual Operator OTT households ~4.2 million ~9.0 million Satellite Virtual operator Open internet 23
Slide 24: Viaplay – Market Leading Offering
Viaplay – Market Leading Offering On any device • 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, sm
Slide 25: Viaplay – Customer Focus
Viaplay – Customer Focus Highly rated in consumer tests Internetworld - Top100 Best Entertainment Site 2012: #2 ”For the biggest selection of movies, chose Viaplay.” 25 - Kritiker.se (extensive test of Viaplay, Netflix and Filmnet)
Slide 26: Expanding Our Service Offering
Expanding Our Service Offering Viagame • Expanding our offering to encompass other aspects of media • Cross-promotion, sales synergies, relevant customer databases 26
Slide 27: Exporting the Pay-TV Model
Exporting the Pay-TV Model Broad EE, Russia & CIS exposure 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Countries 7 11 15 22 23 24 25 25 28 34 Channels 2 3 5 6 7 8 10 15 19 23 Satellite platforms 27 Baltics Ukraine Russia
Slide 28: Popular & Established Brands
Popular & Established Brands Market leading channel portfolio Share of viewing – Free TV and Viasat Top 10 pay-TV channels in Russia (monthly channels (Russia, 25-44*) reach, million people) 16 13,1 TV 1000 Russian Kino 21,2 11,3 10,7 10,6 12 TV 1000 20,6 9,5 Discovery Channel 19,4 8 Animal Planet 1
Slide 29: The next step
The next step HD Channel package & Viaplay • Four exclusive key premium content deals signed in Russia, Ukraine & CIS • New premium HD channel package launched in Russia & Ukraine • Viaplay launched & available to HD customers and on independent basis Exclusive Premium Content from major Hollywood S
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