Today s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Recap from last year: Strong VOD growth to continue Strong Viaplay customer momentum Viaplay loyalty increasing VOD platforms at industry forefront More VOD exclusive content than ever The power of a Nordic media house Digital innovation This is just the beginning Future outlook 3
Today s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Video entertainment spending is rising Nordic TV market (BSEK) +8% CAGR 49.8 53.8 58.4 62.2 EST TVOD AVOD SVOD Free TV Pay TV 2014 2015 2016 2017 Source: Mediavision, Zenith, IHS, PwC, IRM, Ovum, MTG analysis Future outlook 5
And on-demand is the driver Nordic video-on-demand market (BSEK) +34% CAGR 10.2 12.8 5.3 7.4 TVOD EST AVOD SVOD 2014 2015 2016 2017 Source: Mediavision; Annual & industry reports Future outlook 6
2017 has been a great year Revenue MSEK EBIT MSEK +13% +11% +3% +15% +22% +38% 2016 2016 2017 2017 Q1 Q2 Q3 Q1 Q2 Q3 Future outlook 7
How is this possible? Future outlook 8
Strong underlying performance Financial performance Revenue (MSEK) Financial performance EBIT (MSEK) 10,260 +4% CAGR 10,487 11,139 11,138 9.6% +10% CAGR 11,846 10,807 +1% CAGR +21% CAGR 4 600 4 656 4 866 4 762 5 065 1 339 1 405 1 370 1 299 1 565 5 660 5 831 6 272 6 045 6 781 2014 2015 2016 R12M 16 R12M 17 2014 2015 2016 R12M 16 R12M 17 Free TV and Radio Pay TV Future outlook 9
Rapid digital growth Started streams Started streams BTV subs +25.1% +46.5% +25% +42% +46.4% +46% +3.8% +4% +54.0% +53% +68.2% +68% 2015 2016 R12M 16 R12M 17 2015 2016 R12M 16 R12M 17 2015 2016 R12M 16 R12M 17 Future outlook 10
But, there is no lack of challenges Future outlook 11
Decline of linear viewing Indexed PUT and market price PUT Price 140 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 H1 Note: Commercial PUT 3+ Future outlook 12
Satellite erosion? PTV subscribers (excl. Viaplay) PTV revenues (incl. Viaplay) -3% CAGR +9% CAGR 2015 Q3 2016 Q3 2017 Q3 2015 Q3 2016 Q3 2017 Q3 Future outlook 13
Sports remain paramount but high cost inflation Future outlook 14
Our sports rights portfolio is unique National Soccer Leagues National Hockey Leagues 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2022 2026 2024 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2021 2021 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2022 2018 2019 2024 2018 2018 2018 2018 2021 2022 2018 2018 2021 2024 2022 2016 2024 Future outlook 15
25 year relationship with UCL is the model Engaging content Use of host, commentators and experts profiles Promotional clips Engaging content All 8 games broadcasted Instant highlight feed 1 Game on Free-TV with pre- and post studio Creative sales/ Editorial integration Oddset Nyt Highlights from games All 8 games broadcasted Instant highlight feed Future outlook 16
Today s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Benefits of being a unique Nordic Power House Norway Sweden Pay TV XVOD Pay TV XVOD Free TV AVOD Free TV AVOD Radio Radio Denmark Finland Pay TV XVOD Pay TV XVOD Free TV AVOD AVOD Future outlook 18
Utilisation case 1 Familien fra Bryggen (Unique viewers) +55% Viaplay Viafree Free TV 2013 Season 3 2016 Season 9 Future outlook 19
Utilization case 2 15 hours pre-talk live nonstop on TV3 2.25 million views on Viasport.se All time high record sales Number of sold PPV +227.2% +227% 499 SEK/PPV 299 SEK/PPV The Nordic Rumble 24 Feb 2017 MayMac 26 Aug 2017 Future outlook 20
Utilization case 3 Swedish Dicks Produced by Nice s Brain Academy Season 2 launch on Viaplay First window premiere on Viaplay (Sep 2016) Re-run of Season 1 on FTV ahead of Season 2 launch on Viaplay Second window premiere on TV3 (May 2017) Sold to Pop Networks in US (80M households) Sold to Lionsgate (Season 1 & Season 2) Future outlook 21
Viaplay video
Unique offering through all digital windows Cinema EST TVOD SVOD SVOD Sports TVE Local players itunes itunes Telcos & PayTV operators Local players Local players Local players Local players Future outlook 23
Cutting edge technology & enhanced user experience Best in class software development practise (200 in-house engineers) 1,500+ product updates in 2017 Latest video platform supporting 4K content Europe s premier live platform with 15,000 live events/year Maximum reach across consumer electronic devices (85%) Optimized digital payment platform with credit card and direct debit Future outlook 24
5x growth in 4 years Viaplay revenue and subs growth (indexed from 2013Q3, based on subs outgoing balance) 500 400 Revenue Subs 300 x5.0 200 x3.2 100 0 2013 Q3 2017 Q3 Future outlook 25
Subscribers are watching more & more Number of started streams per quarter (indexed) +8x 2013 Q3 2017 Q3 Future outlook 26
With lower churn & higher satisfaction Annual Churn (indexed from 2013Q1, TM only) NPS (weighted per country and indexed from 2016Q1) 100 80 30 25 20 TM Sport 15 60 10 40 5 20 0-5 0 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3-10 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 Future outlook 27
Viafree video
Viafree is millennial TV Future outlook 29
Sales outgrowing streams as pricing adjusts Started streams Revenue +25% +31% +4% +12% 2015 2016 R12M R12M 2016 2017 2015 2016 R12M R12M 2016 2017 Future outlook 30
Viafree is the natural evolution of Free-TV 96% Completed 91% Viewable 100% Impression Bundled with Free TV Outstanding online viewability Programmatic Future outlook 31
Enabling new high-potential partnerships Distribution partners Sales/content partners Future outlook 32
A powerful combination completes the customer journey A15-35 Characters & personalities Power Family Film Kids Entertainment & Engagement Reality Upsell Premium Sports TV series Advertising-based Mobile-first Subscription-based Viaplay originals & exclusives Future outlook 33
Radio 2.0 Switch from FM to DAB National Radio Licenses Current RIX FM coverage New national license coverage 82% 68% Future outlook 34
Future is bright for audio Radio ad market MSEK Growing consumption 760 +13% 15% CAGR 848 963 New digital opportunities 2015 2016 2017 Future outlook 35
Distribution remains key 36 Future outlook 36
Today s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Content video
Multi-layered partnerships with Hollywood majors Platform offering Studio deal Multi-layered solution Each platform requires specific content Facilitating all MTG platform needs in one studio deals Layering acquired content across platforms to ensure platform fit & enable strong profitability Future outlook 39
Utilizing strong partnerships to drive nextgen TV viewing Partner or channel carriage Secure Viaplay content Secure exclusive content Co-operate on ad sales Strong viewing performance across kids, TV-series & movies Increase sales revenues Generate revenues from AVOD content USP against competitors Increase sales revenues Future outlook 40
Maximizing the value across multiple windows Past Now Free-TV US network Niched cable content Vintage TV-series Free-TV US network Pay-TV & SVOD Niched cable content AVOD Vintage TV series Future outlook 41
And now we develop our own content Premiere Simultaneous premiere 7 days catch-up 6 months after Premiere 8 months after 7 days catch-up 12 months after Premiere Simultaneous premiere Build & hold 6 months after Premiere Simultaneous premiere Build & hold 6 months after Premiere 6 months after Premiere 5 weeks after 14 days catch-up 6 months after Future outlook 42
With more than 50 original productions MTG will be the leading Nordic drama producer 13 Titles Premiered 19 Titles in Production 22 Titles in Development 2016 2017 2018 2019 2020 2021 Future outlook 43
Creating a unique value chain & ecosystem Platform Value Chain Production Multi-screen SVOD Free TV broadcaster Catch-up AVOD Distribution Description Produces titles with Viaplay & Free TV partner Acquires exclusive SVOD licenses & equity share Free TV co-invests & attains Free TV licensing rights Acquires exclusive AVOD licenses Provides minimum guarantee & distributes globally Value added to MTG Future outlook 44
That is attracting international interest Future outlook 45
Competitively positioned to win Pay TV platform Pay TV channels Free TV channels SVOD AVOD TVOD Pan-Nordic Future outlook 46
Today s agenda Recap from last year Today and our position going forward Future growth drivers Our content Future outlook
Our concept is working Sports Series Movies Kids OP IP Advertising, Subscription & Distribution revenues DTH Cable BTV VOD DTT Mobile Future outlook 48
We have solid growth drivers Future outlook 49
We will continue to develop Strict cost control Shift investments to online New co-ops Multi-layered relationships New revenue streams Future outlook 50
The people behind our success 87% Response rate 94% Are willing to make an extra effort to make their company successful 90% Are proud of working for their company 87% Think it is fun to go to work 85% Are motivated in their work Future outlook 51
We will deliver topline growth and higher profits! #wearemtg Future outlook 52