1

1.

Born 1972

Joined MTG in 1999

What I love: The feeling of WINNING

What I hate: Surprises, especially financial

and negative…

Favourite quote: “Cash is Cash – Everything

else is just an opinion.”

Mathias

Hermansson

Chief Financial

Officer

Value creation the MTG way

3

Revenues & EBIT

SEKm

0%

3%

6%

9%

12%

15%

18%

21%

24%

27%

30%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Revenues EBIT EBIT-margin

6%

15%

21% 21%

29%

34% 31%

15%

25%

29%

Excluding non-recurring items

Total EBIT excluding discontinued operations and one-offs

Return on capital employed

4

Consistent outperformance

Source: Broker research, Factset

CTC Media MTG

TVN

ProSiebenSat1 BskyB

M6 ITV

TF1

Mediaset

Mediaset Esp Antena 3

CME

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

-5% 0% 5% 10% 15% 20% 25%

EB

IT G

row

th C

AG

R 0

5-1

1

Revenue Growth CAGR 05-11

5

Innovation driving growth

Secondary channels Tango TV launched in Lithuania

The mini-pay wholesale channel business is launched in Eastern Europe

Launch of the first IPTV services in Europe, Launch of Viasat PVR

Viasat DTH platform launched in the Baltics

Launch of TV6 in Sweden, further expansion of the mini-pay business in CEE

Launch of the first DTH pay-TV platform in Ukraine, viasatondemand launched

Virtual IPTV Operator invented, Launch of free-TV in Ghana (W Africa)

Launch of several new channels (Viasat Hockey, TV3 PULS, Prima COOL)

Launch of TV10 in Sweden, 3D TV introduced in the Nordics

Launch of online streaming OTT offering Viaplay in the Nordics

Launch of the Viaplay set-top-box in Sweden…

Made To Grow... organically

6

Strict cost control

Underlying strict cost control, while balancing

organic investments to drive growth

0

2

4

6

8

10

12

14

16

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Sales Costs

Y-o

-Y g

row

th a

t c

on

sta

nt

FX

ra

te

(%)

• <0.5% annual cost

increase last three

years when

excluding content

costs & variable

costs

7

Cash is king

Net operating cash flow (SEKm)

0%

20%

40%

60%

80%

100%

0

500

1,000

1,500

2,000

2,500

Net operating cash flow % of EBITDA converted

0

20

40

60

80

100

120

140

Dividends received from CTCM

(SEKm)

8

Managing working capital down

• Significant improvements

in inventory management

• Tighter management of

supplier payments terms

and collection routines

• Seasonal fluctuations

within calendar year

Working capital development

(% of revenues)

0%

2%

4%

6%

8%

10%

9

Asset light business model

• Capex has historically

represented a low

percentage of revenues

and this is expected to

continue

Capex development (SEKm)

0.0%

0.1%

0.1%

0.2%

0.2%

0.3%

0.3%

0.4%

0.4%

0

50

100

150

200

250

300

350

400

Capex % of sales

10

Deleveraging at the same time

0

1,000

2,000

3,000

4,000

5,000

Q1 '0

9

Q2 '0

9

Q3 '0

9

Q4 '0

9

Q1 '1

0

Q2 '1

0

Q3 '1

0

Q4 '1

0

Q1 '1

1

Q2 '1

1

Q3 '1

1

Q4 '1

1

Q1 '1

2

0

1,000

2,000

3,000

4,000

5,000

6,000

Q1 '0

9

Q2 '0

9

Q3 '0

9

Q4 '0

9

Q1 '1

0

Q2 '1

0

Q3 '1

0

Q4 '1

0

Q1 '1

1

Q2 '1

1

Q3 '1

1

Q4 '1

1

Q1 '1

2

(SEKm)

(SEKm)

Net Debt

Available Liquid Funds

• Net debt below SEK 750

million as at 31 March

2012

• SEK 6.5 billion revolving

credit facility matures in

2015

• More than SEK 5.5 billion

of liquid funds available

within less than a week

11

While creating greater flexibility

EBITDA excluding CDON Group, DTV, TV Shop and non-recurring items, inlcluding

associated income

Net debt / EBITDA

M6 -1,0

CTC Media -0,5

Mediaset Esp. -0,1

ITV -0,1

TF1 0,1

MTG 0,3

Antena 3 0,6

BskyB 0,7

ProSiebenSat.1 2,1

Mediaset 2,4

TVN 4,0

CME 6,8

Average 1,3

Net debt / EBITDA

(2011)

Source: Broker research, Factset

0.0

0.0

0.0

0.1

0.1

0.1

0.1

0.1

0.2

12

For investing in growth &

returning cash to shareholders

• Primary focus is on growth and reinvesting cash flow into operations

+ M&A

• Balanced with TSR commitment – reflected in newly adopted policy to

distribute at least 30% of recurring net profit as annual ordinary

dividend

Cash distribution

(SEK)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2006 2007 2008 2009 2010 2011

Buybacks (value per share)

CDON spin-off

Extraordinary dividend pershare

Ordinary dividend per share

Net cash flow per share

EPS adj (excluding one-offs)

30% of EPS adj (excludingone-offs)

13

Allocating capital to structurally

growing regions

Cash flows from Scandinavia invested into Emerging

Markets

2000: Acquisition of 95% of Hungarian operation

2001: Acquisition of 75% of DTV in Russia

2002: Acquisition of 36% of CTC Media in Russia

2005: Acquisition of 50% of Prima TV in Czech Republic

2006: Acquisition of 100% of Slovenian operation

2007: Acquisition of 50% of Diema channels in Bulgaria

2008: Acquisition of 50% of pay-TV platform in Ukraine

2008: Acquisition of 100% of Nova TV in Bulgaria

2010: Acquisition of 50% of pay-TV platform in Russia

2010: Acquisition of additional 35% of Viasat Ukraine

2012: Acquisition of 100% of LNT free-TV group in Latvia

M&A team of 4 professionals hired from Nordic & international

investment banks

• Focus on market consolidation opportunities across all existing

markets, acquisitions in additional CEE & African territories and

content production businesses.

14

And the show must go on

Key investment criteria

• Broadcasting or broadcasting related assets

• Markets / companies with structural growth opportunities

• Synergies with existing operations

• Strong incremental profitability model

• Ability to grow with the flow

• ROI hurdle rates

• Contrarian & Opportunistic strategy – now is the time

• Learn from previous successes & mistakes

X

X

X

X

X

15

So, what does the future hold?

Key focus is long term growth and value creation

…the MTG way

Strong cash generation to continue

• Continued low working capital and capex as percentage of sales

• Expected total CTC Media cash dividends of USD 80m during 2012

Commitment to continue to invest in future growth

• Re-investment in current businesses + new start-ups to ‘grow with the flow’

• Explore consolidation, new market and content production M&A opportunities

Commitment to deliver shareholder returns

• Dividend policy to distribute at least 30% of recurring net profit to shareholders

• Buy-back mandate in place for up to 10% of shares

16

CH

AP

TE

R N

AM

E