Modern Times Group MTG AB Class A · OMXSTO:MTG_A
Modern Times Group MTG AB Class A — Shareholder Meeting (2015)
27 slides from Modern Times Group MTG AB Class A's shareholder meeting presentation, Oct 1, 2015
Slide 1: 2015 AGM
2015 AGM
Slide 2: A clear & simple story
Managing the …into the leading …while looking to transition of digital entertainment grow new and …and growing our traditional providers in each scalable digital sales and profits broadcasting existing market… businesses… businesses… A clear & simple story 2
Slide 3: A track record of growth & transformation
(SEK million) 18,000 16,000 A track record 14,000 12,000 10,000 of growth & 8,000 6,000 transformation 4,000 2,000 0 3
Slide 4: And stable profits after a period of investment
(SEK million) 3,000 2,500 And stable profits after 2,000 1,500 1,000 500 a period of 0 investment EBIT ex associates & NRI Associated income 2014 EBIT affected by SEK -155m of non-recurring items 4
Slide 5: Shareholder Returns (SEK)
Dividend Shareholder Returns 12 • Asset light & highly cash generative 10 • Record high pay-out ratio of 57% 8 in 2014 (SEK) 6 • Low gearing with diversified access to 4 6.5 bn of available, flexible & low cost facilities 2 0 • Ongoing combination of investment 2009 2010 2011 2012 2013 2014 (organic
Slide 6: A convenient truth
Average minutes viewed per day (USA; 18+) 350 300 250 200 150 100 50 A convenient 0 2011 2012 2013 2014 2015 truth Linear TV Mobile & connected devices Source: Emarketer 6
Slide 7: And Sweden is leading the way
And Sweden Average minutes viewed per day (Sweden) is leading the way 200 150 Image or colour fill goes on top of this 100 50 0 2011 2012 2013 2014 Traditional video OTT video Source: MMS, Mediavision 7
Slide 8: With new behaviours & models emerging
SVOD penetration (Swedish households) 30% With new 25% behaviours & 20% 15% models 10% emerging 5% x4 0% Q4 2012 Q4 2014 Source: Mediavision 8
Slide 9: And attracting a new generation of video viewers
Average minutes viewed per day (Sweden) 400 350 And attracting 300 250 aImage new generation or colour fill goes on top of this 200 of video viewers 150 100 50 0 16-20 år 21-25 år 26-30 år 31-40 år 41-50 år 51- år Linear TV Streamed content Downloaded content Other Source: MMS 9
Slide 10: While video continues to take advertising market share
Share of total advertising spend (Sweden) While video 30% 24% 26% 27% continues to 25% 22% 21% 20% 20% 19% 20% take Image or colour fill goes on top of this 15% advertising 10% 5% market share 0% 2007 2008 2009 2010 2011 2012 2013 2014 TV Share Online Video Share TV + Online Video Share Source: IRM
Slide 11: When the winds of change blow, some people build walls… Others build windmills
When the winds of change blow, some people build walls… Others build windmills 11
Slide 12: By offering the best content…
By offering the best content… 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 MTG SBS/Discovery RTL Bonnier Mediaset CME Pro7 Total number of broadcast hours (2014) 12
Slide 13: From the very best partners
From the very best partners 13
Slide 14: And owning scale content production
And owning scale content production #1 in the Nordics with global distribution capability 14
Slide 15: A healthy linear subscription business
Over 500,000 A healthy linear satellite TV subscribers subscription business Over 450,000 subscribers to Viasat channel packages on Image or colour fill goes on top of this 3’rd party platforms Premium service with premium pricing of up to EUR 60 per month 15
Slide 16: Drives Viaplay's growth and development
Drives Viaplay’s growth and development Image or colour fill goes on top of this From a basic Reaches all Unique content package at EUR 9 connected offering with per month to a Internet based pay- households and thousands of hours premium package TV service devices in the of sports, movies at EUR 30
Slide 17: A Scandinavian linear free-TV powerhouse
A Scandinavian linear free-TV powerhouse 30.8% Swedish CSOV Norway 25.7% Available on all Danish CSOV distribution platforms 16.8% Norwegian CSOV Image or colour fill goes on top of this Sweden Delivering additional Denmark Offers high returns on reach through sales investment co-operations for adve
Slide 18: Becoming a digital leader
Becoming a digital leader Catch-up Attracting new services online complemented audiences with by extra digital video views up material and 40% in 2014 verticals Image or colour fill goes on top of this Delivering 77% advertising Sales co- video on operations demand increase reach revenue growth in 2
Slide 19: The Nordic model
The Nordic model Sales growth (y-o-y) EBIT growth (y-o-y) 8% 15% 10% 6% 5% 0% 4% -5% -10% 2% -15% -20% 0% -25% -30% -2% -35% Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 19
Slide 20: An Emerging Markets Free-TV Powerhouse
An Emerging Markets Free-TV Powerhouse #2 #1 #1 Czech Baltics Bulgaria 4 channels 12 channels 4 channels CSOV 35.6% CSOV 47.9% pan-Baltic CSOV 32.4% On average 115 million started streams per month 20
Slide 21: A global pay-TV channel business
A global pay-TV channel business 131 mn subscriptions in 143 countries Factual Basic movies Sports Premium Music & movies lifestyle 21
Slide 22: Active portfolio management
Sale of Zitius Swedish May 2014 communications operator Active Dec 2014 Closing down of Raduga Russian satellite TV platform portfolio management Feb 2015 Sale of Sappa cable TV company in Sweden Sale of Hungarian free-TV Feb 2015 channels 22
Slide 23: Investing in scalable digital content & communities
Investing in scalable digital content & communities 23
Slide 24: Corporate Responsibility
Corporate Responsibility Commitment to Prioritisation of Freedom of Ongoing focus data protection & expression & of the on child protection privacy media 24
Slide 25: The Game Changers
The Game Changers improved the lives of more than 38 O00 CHILDREN* NEARLY 300 CO-WORKERS were engaged in the Game Changers initiative G MORE THAN 200 news articles were written about Game We launched the Game Changers Changers initiative in 10 COUNTRIES
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Slide 27: Thank you!
Thank you!