Shaping the future of entertainment...• eSports: The world’s leading esports company with...

Shaping the future of entertainment

Rolling 12 month performance

8% organic sales growth & 29% profit

growth

6% Nordic Ent. organic sales growth & 11% profit growth

25% total shareholder return

37% MTGx organic sales growth &

EBITDA profitable

2

Net sales(SEK million)

Operating income(SEK million)

14,999

17,537

2016 2017

1,060

1,264

2016 2017Operating income before items affecting

comparability (IAC)

Digital revenues (+68%)

22%31%

Net sales from continuing operations

Transformation is part of our DNA

1987 2018

Refers to acquisitions and divestments from 2015 onwards * Bulgaria expected to close in H2 2018

AcquisitionsEV = SEK 5.9 bnESL ESEA

Kongregate

Zoomin.TV

EngageDigital

Partners

Splay

InnoGames

DreamHack

DivestmentsEV = SEK 8.6 bnRussia Africa

Baltics

Sappa

Hungary

Ukraine

Czech Rep.

Trace &Bulgaria*

Digital transformation & portfolio management

• A pure play in digital entertainment

• Comprising esports (ESL & DreamHack), online gaming

(InnoGames & Kongregate), digital video content (Zoomin.TV

& Engage Digital Partners), other investments

• President & CEO: Jørgen Madsen Lindemann

• CFO: Maria Redin

• Shares will remain listed on Nasdaq Stockholm

• The leading entertainment provider in the Nordic region

• Comprising Nordic Entertainment, MTG Studios and

Splay Networks

• President & CEO: Anders Jensen

• CFO: Gabriel Catrina

• Shares will be distributed to MTG shareholders and listed

on Nasdaq Stockholm

Plan to split MTG into two listed companies

• Two publicly listed companies that are shaping the future of their respective industries with leading brands

• Two businesses with improved focus and agility to capitalise on growth opportunities and drive shareholder value

• Two distinct investment cases with clear financial profiles and capital structures

• The time is right – decision taken from a position of strength. Robust financial performance, strong leadership teams and an

inspired workforce

• Distinct investment cases & equity stories• Facilitates separate funding models & capital allocation• Enables fair valuation of both businesses

Financial

• Greater focus & clarity• Serving different target markets• Adapting faster to market dynamics

Strategic

• Aligned accountability & incentivisation• Simpler decision making • Attracting highly skilled talent

Operational

1

2

3

Compelling rationale – the natural next step

Pay TV SVOD

Free TV AVOD

Radio

Pay TV SVOD

Free TV AVOD

Pay TV SVOD

Free TV AVOD

Radio

Pay TV SVOD

AVOD

A fully integrated media powerhouseNorway

Denmark

MTG Studios (17 countries)

Finland

Splay Networks

Sweden

• Leading entertainment provider with a uniquely integrated structure

• Nordic Entertainment: Pay- & Free-TV + leading pay and free streaming services

• MTG Studios: Nordic region’s leading content production company

• Splay: Nordic’s leading digital video network

• Undisputed content leadership: sports, acquired content & top quality original productions from MTG Studios and Splay

• Leading digital positions through Viaplay, Viafree, Viareal, I Like Radio & Splay

• Digital revenues increased by 31% in 2017 to account for 19% of total sales

Note: USD transaction headwind on EBIT amounted to SEK 187m, 184m and 78m for 2015, 2016 and 2017 respectively

13,684

-2631,986

5,094

6,867

12,876

-1591,897

4,866

6,272

12,219

-781,810

4,656

5,831

EliminationsMTG Studios & SplayFree-TVPay-TV

1,771

1,5571,530

Net Sales (SEKm)

EBITDA before Group central costs (SEKm)

2015 2016 2017 2015 2016 2017

CAGR +6%

CAGR +8%

Nordic Entertainment Group in brief

CAGR+18%

Multiple digital growth drivers

2015 2016 2017 2015 2016 2017 2015 2016 2017

Started streams Started streams BTV subs

CAGR+49%

CAGR+43%

Pay TVplatform

Pay TVchannels

Free TV channels SVOD AVOD TVOD Pan-Nordic

Competitively positioned to win

An unmatched portfolio of sports rights…

NationalSoccer

Leagues

20262021 2021 2022 2021 2024 20222021 2022 2018 2021 20182024

20212021 2021 2022 2021 20242021 2022 2018 2021 20182024

20222021 2021 2022 2021 20242021 2022 2018 2021 20182024

20182021 2021 2022 2021 2024 20222018 2022 2018 2021 20182024

2018

2018

2021 2025

2021

2021

2021 2025

2025

2025

2018 2019

2018

2018

2018 2019

2019

2019

1st Pay window 2nd Pay window

…and the best acquired content

14Titles

premiered

18Titles in

production

22Titles in

development

Over 50 original productions

2016 2017 2018 20202019 2021

Rig 45RIG 45

Telcos & Pay TV operators

Local players

Local players

Local players

Local players

Local players

Cinema EST TVOD SVOD SVOD Sports TVE

Viaplay – a unique product offering

Nordic Entertainment Group – key priorities

• Capitalise on content and digital leadership positions

• Cost control & continue to shift investments to content & online

• Build a strong international IP, production and distribution house

• Expand product offering in each market

• Look for structural opportunities to drive convergence

The new MTG

Digital Video

Content

Online Gaming

Other holdingsEsports

MTG – a pure play in digital entertainment

193 206

1 2341 012

1 370

2016 2017 2017 PF

1,206

2,810

Net Sales (SEK m)

EBITDA*(SEK m)

3,550

-170

36

202

2016 2017 2017 PF1 1

New MTG – a digital hyper-growth story

• A pure-play global digital entertainment company

• eSports: The world’s leading esports company with category brand leaders that are shaping the future of the industry

• Online gaming: 2 proven concepts with multi-platform development & publishing capabilities

• Digital video content: Helps influencers, brands & creators to succeed on digital & social platforms

• Successful M&A record of investing in globally attractive digital entertainment verticals with portfolio synergies

• VC funds to provide access to future M&A targets Online Gaming

Digital Video Content excl. Splay

eSport

*EBITDA before Group central costs

1) 2017 pro forma as if acquisitions had been consolidated since Jan 1

• 74% owned

• The world’s leading esports company

and the category brand leader

• League operator, stadium events

organiser and content producer

• 100% owned

• Grass-roots LAN parties & festivals

• Focus on interaction & gaming

• Building high engagement levels

Our esports brands are shaping the industry

Source: NewZoo – 2018 Global Esports Market Report

Game publisher fees

Media rights

Advertising

Merchandise & tickets

Sponsorships

26%CAGR

2017655 USDm

14%

13%

21%36%

16%

20211,651 USDm

24%

9%

14%

46%

7%

Esports – a hyper-growth industry

LEGENDARYThe world’s best

PROEsports champions

AMATEURProve your skill

CASUALGood luck and have fun

VIE

WIN

GPA

RTIC

IPA

TIO

N

All games All platformsAll levels Global presence

From Amateur to Pro across relevant games

ParticipationMoneyProduct Content

Games Developers & Publishers

Brand Partners & Advertisers

Players/Teams League Operators/Content Producers

AudienceDistributors

The evolving esports ecosystem

Global gaming market (USD billion)

25 24

32 36

44

69

2016

101

2020E

129

12%

3%

0%

Mobile & Browser

Console

PC

6% CAGR

Online gaming –a huge global market

Source: Newzoo; OC&C Analysis

More paying players

More players

Higher spend per player

• 100% owned

• Proprietary publishing platform with more than 100,000 live games

• Expanding into 1st party games development withseveral bolt-on acquisitions of smaller studios

• Provides valuable network access and abilities to screenthe game developer landscape

• 2017 pro forma (as if consolidated from Jan 2017) sales up 43% to SEK 428m with ~10% EBITDA margin

• 51% owned

• Cross-platform games developer with six successful titles in mid-core strategy segment

• InnoGames has combined healthy top-line growth with high & stable margins

• 2017 pro forma (as if consolidated from Jan 2017) sales up 25% to SEK 1,547m with ~25% EBITDA margin

Two proven online gaming investments

The new MTG –key priorities

• Become Europe’s preferred partner for digital entertainment companies around the world

• Maintain position as the world’s #1 esports company

• Further develop our positions in online gaming

• Selective M&A to expand position in existing verticals and exploit opportunities in new verticals

• Look for strategic partnerships to drive further value creation

facebook.com/MTGAB Modern Times Group MTG AB @mtgab MTGModernTimesGroup moderntimesgroup

Find out more @mtg.com and @nentgroup.com

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