Investor Presentation November 2009 Worldreginfo - Bcb825d3-6958-425A-849C-7679980A557a Safe Harbour Statement
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Investor Presentation November 2009 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a Safe Harbour Statement This presentation contains written or oral forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions. Statements that use the terms “may”, “believe”, “anticipate”, “expect”, “plan”, “target”, “prospect”, “estimate”, “intend” and similar expressions of a future or forward-looking nature identify forward-looking statements for purposes of the U.S. federal securities laws or otherwise. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Forward-looking statements reflect our current views with respect to future events and because our business is subject to such risks and uncertainties, actual results, our strategic plan, financial position, results of operations and cash flows could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the effect of the credit crisis and economic downturn in our markets as well as in the United States and Western Europe; decreases in television advertising spending and the rate of development of the advertising markets in the countries in which we operate; the timing and sustainability of any stabilization and economic recovery in the markets in which we operate; the timing and impact of any additional investments we make in our Bulgaria and Ukraine operations; our effectiveness in implementing our strategic plan for our Ukraine operations or our Bulgaria operations; our ability to make future investments in television broadcast operations; our ability to develop and implement strategies regarding sales and multi-channel distribution; changes in the political and regulatory environments where we operate and application of relevant laws and regulations; the timely renewal of broadcasting licenses and our ability to obtain additional frequencies and licenses; and our ability to acquire necessary programming and attract audiences. For a more detailed description of these uncertainties and other features, please see the “Risk Factors” section in our most recent Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on when they were made and we undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures CME reports its financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). However, management believes that certain non- GAAP performance measures used in managing the business may provide meaningful information about underlying trends in our business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, CME’s reported results prepared in accordance with GAAP. Please see the Financial Review section of this presentation for a reconciliation to the most directly comparable GAAP financial measures. With respect to our segment financial information, we do not reconcile Segment net revenues and Segment EBITDA that are provided in local currency to their GAAP equivalents as the GAAP amounts included in our financial statements are expressed in US$. 2 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a We are the leading CEE broadcaster . Market, audience and brand leadership . Strong local content . Twenty one television stations in seven markets . Growing internet presence . Solid medium-term organic growth expectations . 15 years of leadership in the region . Pan-regional portfolio . Proxy for consumer spending growth . Transparency of NASDAQ and Prague Stock Exchange listings Core market Developing market 3 3 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a A new business model Three operational divisions Internet Broadcasting Content Five revenue sources Advertising Content Internet Sale of revenue Subscription product revenue management sales services 4 4 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a We are leaders in our core markets Leadership charts for four of our core markets 1 January – 30 September 2009 Czech Republic - 15-54 Romania - 18-49 Urban Slovak Republic - 12+ Slovenia - 18-49 Time Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun 06:00 06:30 07:00 07:30 08:00 08:30 09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30 Nova Group CT Group Prima group Pro TV SA Intact Group Markíza JOJ Group STV 1.POP TV+Kanal A 1.SLO1 +SLO2 Sources: ATO Mediaresearch, TNS-AGB INTL, PMT/TNS SK 5 Core markets: Czech Republic, Romania, Slovak Republic, Slovenia and Croatia WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a Local content drives station leadership In our core markets, our leading stations have over 50% local prime time content Top 20 shows in the Czech Republic - all channels September 2009 No. Title Channel Rating (15-54) Share (15-54) . Our stations produced 1,101 hours of TV 1 Ordinace v růžové zahradě 2 (series)* NOVA 21.0 56.24 fiction and 2,102 hours of reality and 2 Televizní noviny (news)* NOVA 19.4 68.68 3 Sportovní noviny (sports news)* NOVA 18.4 61.39 entertainment programming in 2009. 4 Česko Slovenská SuperStar (entertainment)* NOVA 18.3 49.92 5Počasí (weather)* NOVA 17.2 56.47 . We develop and produce original drama, 6Marečku, podejte mi pero! (comedy movie) NOVA 16.9 51.67 7Střepiny (current affairs)* NOVA 16.1 50.88 sitcoms, soaps, telenovelas and TV 8 Šifra mistra Leonarda (Da Vinci Code movie) NOVA 15.9 53.31 movies. 9 Asterix a Olympijské hry (comedy movie) NOVA 14.8 43.78 10 Víkend (current affairs)* NOVA 14.7 50.32 . Our local content outperforms acquired 11 Kriminálka Las Vegas (CSI Las Vegas) NOVA 13.6 49.21 12 Comeback (sitcom)* NOVA 13.5 39.50 programming and strengthens our library. 13 Kriminálka Miami (CSI Miami) NOVA 13.0 46.05 14 Hříšný tanec (Dirty Dancing movie) NOVA 12.0 48.08 15 Jen trošku štěstí (Just My Luck movie) NOVA 11.9 40.48 16 Daredevil (action movie) NOVA 11.7 42.33 17 Vyprávěj (series) ČT1 11.5 30.61 18 Strážce (The Sentinel movie) NOVA 11.5 38.83 19 Máma XXXL (Mother XXXL documentary) NOVA 11.4 49.79 20 Bekyně mniška (comedy movie) ČT1 11.0 27.10 Source: ATO Mediaresearch. For daily and weekly shows the audience shares and ratings are averages for the whole month. * Produced by TV Nova 6 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a … we focused on our mission: maintaining brand leadership 2009 Forecast All Day Audience Share and Market1 Share in core markets 1.7x 2.0x 2.0x 2.0x 1.6x #1 #1 #1 #1 #2 Audience Share x Power Ratio = Market Share Sources: Audience share data: Croatia, AGB Nielsen Media Research; Czech Republic, ATO Mediaresearch; Slovak Republic, PMT/TNS SK ; Slovenia, Peoplemeters AGB Media Services; Romania and Peoplemeters Taylor Nelson Sofres. Revenue share: CME Segment Revenue data and CME estimates of market size. 1 Advertising revenues include spot revenues and sponsorship. 7 7 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a We have built the foundation for leadership in Internet % 2% +46 +12 Legend: Daily Unique Visitors, Daily Video downloads 8 Source: CME WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a TV and Internet will be the winners from advertising spend growth TV continues to have the broadest reach and capture the highest share of advertisers’ marketing budgets 9 9 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a Ad spend per capita has significant growth headroom Total advertising spend per capita in 2009 Source: CME estimates and GroupM Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, UK At average exchange rates for the year to September 30,2009 10 10 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a Increase in high-end advertising fuels growth TV Nova, Pro TV, Acasa, Pop TV, Nova Sport, Pro Cinema, TV Markíza, Studio Pro.BG, Advertiser Portfolio Kanal A, Nova TV Nova Cinema, Sport.ro, Doma2 1+1, Kino Ring.bg TV Pika3 MTV Czech1 MTV Romania Slovak UK TV Czech Slovenia Bulgaria Romania (EU) Republic Croatia Ukraine Market Republic (EU) (EU) (EU) (EU) Finance, Automotive, Entertainment, 49% Media, Leisure, 29% 22% 37% 29% 38% 11% 29% Travel, Transport & Distribution Food, Telecoms, Cosmetics, 43% Toiletries, Household 63% 77% 62% 69% 60% 84% 48% & Cleaning products 8% Other 8% 1% 1% 2% 2% 5% 23% 100% Total 100% 100% 100% 100% 100% 100% 100% Source: UK TV Market World Advertising Research Center (Marketing Pocketbook) and CME estimates (2008). 1 MTV Czech was launched November 2009 2 Doma was launched August 2009 3 11 We increased our ownership interest to 100% in September 2009 WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a Czech RepublicQ3 2009 Czech Republic TV stations: WorldReginfo - bcb825d3-6958-425a-849c-7679980a557a In Q3 our markets reset at a new starting point . GDP and advertising spend decline in our markets exceeded any forecast made at the beginning of 2009. TV ad spending reset 30% lower than in 2008 to the level of 2007 and in some Crisis countries to the level of 2006.