Central European Media Enterprises Ltd
Central European Media Enterprises — Corporate Update (June 2009)
16 slides from Central European Media Enterprises's corporate update, Jun 30, 2009
Slide 1: Has the downturn changed company strategy?
Has the downturn changed company strategy? Adrian Sarbu, President & COO
Slide 2: Safe Harbour Statement
2 Safe Harbour Statement This presentation contains written or oral forward-looking statements, including those relating to our business strategy, expectations and intentions. Statements that use the terms “believe”, “anticipate”, “expect”, “plan”, “target”, “prospect”, “estimate”, “intend” and simi
Slide 3: The winners after the crisis
3 The winners after the crisis Broadcasting and Internet will emerge stronger. They will more rapidly gain market share from other media.
Slide 4: Winner after the crisis
4 WINNER AFTER THE CRISIS Best people / culture Strong and adequate product Vertically integrated media company. Content, broadcasting, Internet Leadership position in high growth markets Babylon Babylón Babel Вавилон Babel Babel Вавилон
Slide 5: Real GDP has deteriorated
Czech Romania Slovakia Slovenia Croatia Ukraine Bulgaria 2009 GDP outlook* -15% -10% -5% 0% 5% 10% 5 * Real GDP based on the lower end of the range of analysts consensus or the minimum. Real GDP has deteriorated
Slide 6: Local Currency TV Ad market has worsened
6 March ‘09 Forecast Jan ‘09 Forecast Czech Romania Slovakia Slovenia Croatia Ukraine Bulgaria The above percentage declines relate to the local TV Ad market. The US$ equivalent decline would be greater as local currency has devalued against the US$. Source: CME - 3% - 23% - 10% 0% Local Currency TV
Slide 7: In a difficult 6 months we focused on our key tasks
7 1 Core markets: Czech Republic, Romania, Slovak Republic, Slovenia, Croatia All comparisons are year on year Maintain leadership in core markets 1 Tasks Results Stimulate ad spending by adjusting sales policy Reduce operating costs and capex Improve liquidity Restructure the corporate functions Ad
Slide 8: What did we learn?
8 What did we learn? The crisis hit our markets much harder than we expected. Listen to the short term worries, but act for the strategic benefit! The crisis is not over
Slide 9: What we have to do
9 What we have to do Grow our Internet business in order to quickly achieve leadership in our markets Strengthen confidence in our financial profile Continue to enhance the brand, company culture & motivate our people
Slide 10: Task 1: Emerge successfully out of the crisis
10 TASK 1: Emerge successfully out of the crisis Protect our markets, brands and people Improve our skills to remain the lowest cost operators in the region without damaging our audience and brands Enhance our team work at the operational level New CME management organization structure New CME Opera
Slide 11: Task 2: Reset the CME business model
11 We currently operate with broadcasting entities which incubate internet and production We will reset the business model from country operations to : Broadcasting Internet Content And 5 revenue sources: Advertising Revenue Subscription (cable, satellite…) Content, product sales Internet Revenue Sa
Slide 12: Task 3: Build strong content division
12 By 2013, we expect the Content Division to be the largest segment of CME TASK 3: Build strong content division Combined production units of CME are one of the largest producers of content in the region and we plan to make them profit focused The integrated Content Division will not only supply th
Slide 13: Task 4: Launch more channels
13 Expand the multichannel operating model in all our territories TASK 4: Launch more channels EXPAND PROVEN FORMATS THROUGHOUT CME TERRITORRIES § Exploit successes in targeting the female demographic § New female targeted channels in Slovakia and Romania (“Acasa”) LAUNCH AT LEAST ONE NEW CHANNEL EV
Slide 14: Task 5: Grow fast in Internet
14 Our goal is to become the No. 1 Internet player in our region TASK 5: Grow fast in Internet Top 4 in Internet in Slovenia, Croatia, Romania and Czech Republic Top 4 in Internet in Slovenia, Croatia, Romania and Czech Republic We are in an ideal position to take the advantage of this trend 1.7m un
Slide 15: How do we achieve these tasks?
15 How do we achieve these tasks?
Slide 16: Has our strategy changed?
16 In 2013, CME plans to become the largest provider of content for television in Europe. We will sell our content and expertise. Content Has our strategy changed? Digital / Analog / Cable DTH Terrestrial Digital Multichannel Portable Media & Mobile TV
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