CTCCTC Media,Media, Inc.Inc. InvestorInvestor PresentationPresentation
Third Quarter 2009 Results The Leading Independent Media Company in Russia and the CIS
• 4th most watched broadcaster in Russia with a national 6 channels in 4 countries audience of c.100 million for CTC, the flagship channel and 2 in-house production companies • 2nd most watched broadcaster in Kazakhstan (Channel 31)
• Entertainment focus appeals to dynamic, youthful & CTC MEDIA affluent audience GROUP
• TV is the most cost-effective advertising medium in Russia
• Well positioned portfolio of assets with in-house production capabilities FREE-TO-AIR PRODUCTION
• Strong cash flow generation & balance sheet
RUSSIA CIS SOHO MEDIA COSTAFILM
CTC - pure entertainment channel - KAZAKHSTAN Channel 31 - entertainment channel targeting viewers aged 6-54 targeting viewers aged 6-54 Domashny - only channel in Russia - UZBEKISTAN SofTS - start-up channel targeting females aged 25-60
DTV - action / investigative themed channel - MOLDOVA CTC TV Dixi - entertainment channel targeting viewers aged 25-54 targeting viewers aged 6-54
1 Markets of Operations and Primary Strategic Interest
Counties of current operations Belarus Russia Population = 10 million Population = 143 million Countries of potential interest 2008 TV Ad Market = US$ 70 million 2008 TV Ad Market = US$ 5.5 billion 9M 2009 TV Ad Market = US$ 2.3 billion
Ukraine Population = 47 million 2008 TV Ad Market = US$ 475 million
Moldova Population = 4 million 2008 TV Ad Market = US$ 20 million
Uzbekistan Kazakhstan Population = 27 milliom Population = 15 million 2008 TV Ad Market = US$ 15 million 2008 TV Ad Market = US$ 160 million
Potentially reaching over 180 million viewers in four countries of current operations
Sources: Video International, Russian Association of Communications Agencies, Zenith Optimedia, CIA World Factbook, Company’s estimates
2 Key Strategic Objectives
Further consolidation of our position as Russia’s leading independent free-to-air TV broadcaster Core strategy Further development of the DTV and Domashny channels, sustainable position of CTC channel Monetize strong CTC, DTV and Domashny brands. Opportunistic approach to acquisitions and start-up projects in neighboring CIS markets Establish international presence through developing selected CTC Media programs based on existing content for selective international markets
Increase technical penetration of DTV and Domashny channels Drivers Sustain CTC’s target audience share, increase Domashny’s and DTV’s target audience shares Attract younger audiences to Domashny and DTV Integrate Russian networks to drive combined power ratio and sustain sound level of overall market share Expand and improve online presence of free-to-air channels in Russia Maintain focus on pure entertainment programming and complementary audience profiles Exert greater control over programming quality and investments through in-house content production Develop existing CIS operations Selectively expand into neighboring CIS markets to ensure growth participation Maximize cash flows Use strong balance sheet to capitalize on investment opportunities and enhance shareholder returns
Clear and focused strategy
3 Market and Operational Update
4 Russian Advertising Market Overview
Advertising Market Size1 (US$ billion) 2008 Cost per Thousand (CPT)2 (US$)
34% GR - 10.7 et CA - 29% Mark AGR 19 TV Ad rket C 9.1 Ad Ma Total 6.5 TV Ad Market 12 5 5.5 4.5 Total Ad Market 3.9 7 3.2 6 2.3 3 1.7
2004 2005 2006 2007 2008 TV Internet Magazines Newspapers Radio
Ad Spend in Russia by Media Segment1
2% 2% 2% 3%* 4%* Other, incl. Internet Outdoor 18% 18% 18% 18% 17%
Radio 6% 6% 5% 7% 5%
22% 28% 25% 23% Print 31%
Television 49% 50% 52% 44% 46%
2004 2005 2006 2007 2008
TV remains inexpensive relative to other media in Russia and continues to take advertising market share Sources: (1) ZenithOptimedia, Russian Association of Communication Agencies, Video International (2) Initiative Futures Worldwide Note; (*) Internet ad spend share: 2004 – 1%, 2005 – 1%, 2006 – 2%, 2007 – 2%, 2008 – 3%
5 2009 Dynamics of TV Ad Market and CTC Media Advertising Sales in Russia
TV Ad Market1 and CTC Media Russian Ad Sales Dynamics (in Rubles)
9m 2009 Q3 2009 TV ad market in Russia declined 21% year-on-year in 0% the 9 months of 2009 and in Q3 2009 in ruble terms compared to a 30% decline in total Russian advertising -5% -4% -10% market
-20% All CTC Media Russian channels outperformed the -21% -21% market with lower year-on-year sales drops
-30% TV Ad Market Volume CTC Media Russian Channels Ad Sales -40%
TV Ad Spend as % of Total Ad Spend1
58% 52% +6 pp TV increases its share in total ad spend as the most Television effective and the only medium with truly nationwide Other Media reach
FY 2008 9 months 2009
While TV continues to take advertising market share, CTC Media channels significantly outperform the market
Source: (1) Russian Association of Communication Agencies, Video International
6 Russian TV Advertising Sales Structure
Advertisers
Advertising Agencies
Media Sales Houses:
Video International Gazprom-Media / Alkasar
Combined audience share Combined audience share of 60%1 of 30%2
Advertising on CTC Media channels exclusively sold by the largest media sales house in Russia
Sources: (1) Video International web site, as of September 30, 2009. Source for audience share: TNS Gallup (all above 4 years old) in Q3 2009 (2) Public information, as of September 30, 2009. Source for audience share: TNS Gallup (all above 4 years old) in Q3 2009
7 Sectors Advertised on CTC Media Channels
FY 20081 9M 20091
1 Food 23% 1 Food 26%
2 Cosmetics 19% 2 Cosmetics 19% 3 Other goods and services 11% 3 Other goods 11% 4 Telecoms 8% 4 Pharmaceuticals and vitamins 8% 5 Beverages 8% 5 Telecoms 7% 6 Personal care products 6% 6 Beer 6% 7 Beer 5% 7 Personal care products 5% 8 Detergents 5% 8 Beverages 5% Pharmaceuticals and vitamins 6% 9 9 Appliances 5%
10 Appliances 5% 10 Detergents 5%
11 Auto and finance 4% 11 Auto and finance 3%
100% 100%
Vast majority of advertisers are basic consumer goods focused CTC Media advertisers’ budgets split: 77% multinationals, 23% local companies
Note: (1) CTC Media sales data for CTC, Domashny and DTV Networks, 2008-2009
8 Free-to-Air TV Landscape in Russia
Combined Audience Shares, % (all 4+ demographic)
Q3 2008 Q3 2009
22.5 22.3 20.5 20.8 19.7 18.0
13.2 13.5
6.7 5.3 4.7 4.1
Channel One VGTRK Gazprom-Media CTC Media National Media Group Prof-Media
CTC Media is the largest non-state owned broadcasting company in Russia
Source: TNS Gallup Media, demographic “all above 4 years old”, CTC Media’s Research Department
9 All 4+ Audience Share Dynamics and Power Ratio
Combined Power Ratio of CTC Media’s channels in Q3 09 – 1.52 Audience Shares, % (all 4+ demographic)1 up from 1.3 (FY 2008)
19.7 Q3 2008 18.0 Q3 2009 16.6 16.0 15.6 14.9 14.6 13.3 13.2 13.5
9.2 9.0
7.5 6.7
4.8 4.4
2.9 3.1 2.8 2.7 2.4 2.4 2.2 2.1 2.2 2.1 1.9 1.5 1.8 1.2 1.3 1.1 1.0 0.7 0.9 1.0
Channel Ros siy a NTV CTC Media CTC TNT Ren-TV TV Center TV -3 Culture Domashny Sport DTV Muz-TV Spb Zvezda MTV Other 3 One Combined Channel 5
CTC Media captures market share in access of combined audience share due to high power ratio
Source: (1) TNS Gallup Media, demographic “all above 4 years old”, CTC Media’s Research Department Notes: (2) Power ratio = National TV advertising market share/All 4+ audience share (average). Combined Power Ratios for FY 2008 and Q1 2009 include blended power ratios for CTC, Domashny and DTV. (3) Includes audience shares of smaller national channels and regional channels
10 CTC Media Target Audience Share Dynamics
CTC Network Domashny Network DTV Network
12.0 12.2 12.0 11.7 12.0 12.0 12.0
10.0 9.2 10.0 8.9 9.0 8.9 10.0
8.0 8.0 8.0
6.0 6.0 6.0
4.0 4.0 3.2 4.0 2.8 2.8 2.9 2.4 2.2 2.2 2.2 2.3 2.3 2.1 2.1 2.1 2 2.0 1.8 1.8 2.0 2.0
0.0 0.0 0.0 Q3 08 9M08 Q3 09 9M09 Q3 08 9M 08 Q3 09 9M 09 Q3 08 9M 08 Q3 09 9M 09
All 4+ demographic All 4+ demographic All 4+ demographic Target demographic All 6-54 Target demographic females 25-60 Target demographic All 25-54
In Q3 and 9M 2009 each of CTC Media’s networks increased its target audience share year-on-year
Source: TNS Gallup Media (audience shares, %)
11 Increasing Technical Penetration
Technical Penetration1, %
100
90 86.6 87.4 87.5 87.5 Substantial increase in technical penetration for p .8p Domashny (+13pp) and DTV (+18pp) in the last 3 years 80 12 p + .1p 71.0 71.0 +18 70 64.8 61.0 63.0 58.2 We continue to improve the signal distribution 60 54.4 through regional stations acquisitions and expanding our 50 44.9 affiliate network
40
30 50% of technical penetration is provided by CTC Media’s
20 owned-and-operated stations and repeater transmitters 10
0
2006 2007 2008 YTD 2009
Reaching more potential viewers through expanded technical penetration
Notes: (1) Technical penetration means the percentage of the population that has the technical ability to receive a particular broadcast signal. Measured annually by TNS Gallup Media in cities with populations of more than 100,000
12 Programming Strategy
Content split by hours and by % in amortization of programming rights expense
Russian Sitcoms Russian Shows and Sketchoms 12% (16%) 10% (12%) Russian Series Optimal mix of programming 10% (25%) CTC Network1 Russian and Foreign Series Foreign Movies and Animation Locally produced content is the key 32% (36%) 36% (11%) element of our strategic programming grids and drive the audience share in
Movies Russian target demographics (Russian and Shows Russian Series Hollywood 16% (54%) 6% (10%) classics) Foreign Series In-house produced series and sitcoms are 25% (10%) Domashny Network1 and Animation top CTC prime-time performers and are 53% (26%) the core of our content library
¼ of CTC Media’s programming and ½of CTC prime time is produced in-house2 Russian Shows Russian and 15% (51%) Foreign Movies Programming agreements with major 28% (9%) Hollywood studios - Sony Pictures DTV Network1 Russian Series 17% (21%) Television International, Walt Disney,
Foreign Series Paramount, Universal and Warner Bros. 40% (19%)
Maximizing the audience share numbers in desirable demographics through well-balanced program acquisition and scheduling strategy
Notes: (1) Content split is given for YTD 2009 (2) As a % in amortization of programming rights, Q3 2009
13 Strengthening Our Position in the CIS: Kazakhstan
Channel 31
Acquired by CTC Media February 2008
Ownership 60% economic interest
Technical penetration 65%
65% CTC brand content Programming mix 35% local programming
1 Ad Spend in Kazakhstan by Media Segment1 Market Update
2 Other, incl. Internet 2% TV advertising market in 2008 of $160 million Outdoor 11% 15% Radio 6% TV advertising market for 9 months 2009 of $71 million 10% Print 26% 8% TV’s share in total advertising spend is 55% Advertising on Channel 31 is sold by Video International Television 65% 57%
2007 2008
Presence in the third largest TV advertising market in the CIS with potential access to 15 million viewers
Source: (1) Company’s estimates, Video International (2) Internet ad spend share in 2008: 1%
14 Kazakhstan: Audience Share Dynamics
Channel 31 Audience Share Dynamics
Q3 2008 16.6 Q3 2009 16 15.1
14 All 6+ demographic Target demographic All 6-54 11.7 11.6 Audience Shares, % 12 (all 6-54 demographic) 10.4 10.1 10 36.2 33.9 8
6
4
2
0 Q3 08 Q2 09 Q3 09 16.6
11.6 10.9 10.2 10.5 10.2 9.4 7.9 6.2 4.1 4.2 2.4 2.4 2.3 2.2 1.1 1.61.0 1.61.4 1.6 1.1 1.1
Channel Channel 31 NTK KTK Kazakhstan1 El Khabar NTV (Alma Astana Rakhat Tan HIT TV Mir One Eurasia Arna/Khabar TV)
Channel 31 remains the second most watched broadcaster in Kazakhstan
Source: TNS Gallup Asia Note: (1) Channel Kazakhstan’s audience share data for Q3 2008 is not available as it is included into TNS panel starting 2009
15 Financial Highlights
16 Group Total Operating Revenue
-25.7% In Q3 2009 CTC Media’s total operating revenue -25.4% was down 25% year-on-year to $106.9 mln (down 4% year-on-year in rubles terms)
US$ mln The decrease reflects deterioration of the advertising markets as a result of economic 143.3 150 139.5 instability 113.9 106.9 108.5 103.6 Russian advertising revenue accounted for 95% 100 of total operating revenue and was down 4%1 year-on-year in ruble terms
50
0 Q3'08 Q2'09 Q3'09
Advertising Revenue Total Operating Revenue
Note: (1) Includes advertising revenues of CTC, Domashny and DTV channels
17 Group OIBDA and Net Income
OIBDA -30.6%
US$ mln 60 55.0 46.5 Keeping operating costs under tight control 38.2 40 enabled us to achieve an OIBDA margin of 35.7% in Q3 2009 20
0 Q3'08 Q2'09 Q3'09 OIBDA Margin 38.4% 40.8% 35.7%
Net Income +23.3% US$ mln 40 30.3 25.9 21.0 Fully diluted EPS up 23% in Q3 2009 year-on-year 20 to $0.16 from $0.13
0 Q3'08 Q2'09 Q3'09
Net Income Margin 14.6% 26.6% 24.2%
18 Third Quarter 2009 Revenue and OIBDA Contribution by Segment
Q3 2008 Q3 2009
CIS Group 2.5% Production Group Production Group Eliminations and Eliminations and other CIS Group DTV TV Station Group 5.3% 11.6% other 2.3% 1.2% -6.2% -12.7% Domashny TV Station DTV TV Station Group Total Operating 0.8% Group Total Revenue Total Revenue Revenue¹ 2.8% $143.3 mln Domashny TV Station $106.9 mln CTC TV Station Group Group 15.2% 1.9%
DTV Netw ork CTC TV Station Group CTC Netw ork 7.1% CTC Netw ork Domashny Netw ork 13.0% 64.4% 62.7% 9.3% DTV Netw ork Domashny Netw ork 8.8% 9.9%
Q3 2008 Q3 2009
Production Group CIS Group -0.7% Production Group -1.4% Eliminations and other CIS Group Eliminations and other DTV TV Station Group -2.3% 3.4% -16.5% -16.9% -0.2% DTV TV Station Group Domashny TV Station -0.3% Group Total OIBDA Domashny TV Station 2.7% Total OIBDA $55.0 mln Group $38.2 mln 1 0.5% Total OIBDA CTC TV Station Group 20.0% CTC Netw ork CTC Netw ork CTC TV Station Group 78.4% 22.5% DTV Netw ork Domashny Netw ork 81.5% DTV Netw ork Domas hny Netw ork 8.6% 6.0% 9.7% 5.0% Diversification of business and decrease of dependence on CTC Channel
Note: (1) intersegment transactions are included in eliminations. Eliminations include corporate office results
19 Third Quarter 2009 Total Operating Expenses
Q3 2008 Depreciation & Direct operating amortization expenses In Q3 2009 CTC Media’s total operating Amortization of 4% 11% expenses were reduced by 22% year-on-year in sublicensing rights and US dollar terms reflecting continued tight cost ow n production cost 2% control Total OpEx $92.2 mln SG&A expenses We reduced our non-programming costs further 31% year-on-year and were able to maintain a flat cost base in ruble terms and deliver a healthy margin Amortization of for the quarter programming rights 52% Increased programming expenses were connected Q3 2009 to the new Fall season launch and resulted in healthy audience and market share gains Depreciation & Amortization of Direct operating amortization sublicensing rights and expenses 4% ow n production cost 11% 1%
Total OpEx SG&A expenses $71.6 mln 25%
Amortization of programming rights 59%
Flat cost base year-on-year in ruble terms
20 Russian Free-to-Air Channels Financials
CTC Channel1 Domashny Channel1 DTV Channel1
Q3 Change Q3 Change Q3 Change (US$ million) 2008 2009 % 2008 2009 % 2008 2009 %
REVENUES 111.6 82.8 -25.8% 17.4 12.6 -27.6% 11.9 10.3 -13.4%
OIBDA 55.9 38.6 -30.9% 4.8 2.1 -56.3% 4.6 3.6 -21.7%
OIBDA margin % 50.0% 46.6% -3.4pp 27.4% 16.7% -10.7pp 39.0% 35.1% 3.9pp
We reported a 4% decline in our Russian advertising sales in ruble terms against 21% decline in the Russian TV ad market in Q3 2009
Notes: (1) Channels’ results represent combined segment results of respective TV networks and TV Station Groups (including intercompany revenues and expenses that are eliminated in consolidation at CTC Media Group level but excluding inter-segment revenues and expenses between respective TV network and TV Station Group)
21 CIS Group Financials
CIS Group1
(US$, million) Q3 2008 Q3 2009
CIS Group contributed $2.4 million or 2.5% of CTC REVENUES 3.6 2.4 Media’s total operating revenues in Q3 2009
OIBDA (0.8) (0.9) Channel 31 Group contributed a majority of the segment revenues in Q3 2009 OIBDA margin % -20.9% -36.9%
CIS Group contributed 2.5% to CTC Media’s total operating revenues in Q3 2009
Note: (1) CIS Group results include intercompany results that are eliminated level in consolidation at CTC Media Group level
22 Balance Sheet and Cash Flow Highlights
Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights
Nine months ended September, 30 As of December As of September 2008 2009 (US$ mln) 31, 2008 30, 2009 (US$ mln) Cash at beginning of period 307.1 98.1 Net cash provided by operating activities, including 94.1 75.7 Cash and cash equivalents 98.1 112.6 Acquisition of progr. and sublic. rights (206.2) (140.7) Total assets (incl cash), 806.8 838.7 Net cash used in investing activities (411.5) (23.9) Net cash used in financing activities (55.5) (36.5) Including Goodwill 223.0 216.2 Broadcasting licenses 166.2 161.8 Effect of exchange rate changes on cash (9.2) (0.8) Working capital1 70.4 116.7 Cash at end of period 54.3 112.6 Total debt 90.6 56.7 Long term debt 28.4 0.2 Cash used for acqusitions (402.3) (12.1) Short term debt 62.2 56.5 (Acquisitions of businesses, net of cash acquired) Stockholders’ Equity 547.1 637.2 CapEx 8.8 10.7 CapEx as % of Total Revenue 1.9% 3.3% Total Debt/LTM OIBDA2 0.3x 0.3x Free cash flow3 102.8 86.4
Strong cash position and low leverage
Notes: (1) Working capital = current assets - current liabilities (2) LTM OIBDA = OIBDA (Q3 2009+Q2 2009+Q1 2009+Q4 2008) (3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment - acquisitions of intangibles
23 To conclude…
A leading independent media company in Russia and the CIS Most transparent Russian company according to Standard & Poor’s1 The only direct way to get exposure to Russia’s TV advertising market Well-positioned channel brands with growing audience and market shares Benefiting from dominance of TV as only national reach media Majority of client base in consumer goods sector with both large multi- national and local advertisers Operating advantage due to in-house content production businesses Focus on cost control and profit maximization with strong balance sheet
(1) CTC Media scored #1 in Standard & Poor’s Transparency and Disclosure by Russian Companies Study in 2008 and #2 in 2009
24 Appendix
25 CTC Media Shareholder Structure
35% free float IPO on NASDAQ in June 2006 In July 2007 CTC Media qualified for the premier NASDAQ Global Select Market as the result of meeting NASDAQ's most stringent listing standards
Major shareholders:
39% stake in CTC Media Shareholder of CTC Media since 2002 Headquartered in Stockholm, Modern Times Group is a leading international entertainment broadcasting group with the second largest geographical broadcast footprint in Europe MTG’s TV assets are broadcast in a total of 30 countries and have 125 million viewers The company’s shares are listed on Nasdaq OMX Stockholm's Large Cap market
26% stake in CTC Media Shareholder of CTC Media since 2003 Founded in 1989 and headquartered in Moscow, Alfa Group Consortium is one of Russia’s largest privately owned financial-industrial conglomerates Alfa Group is focused on value-oriented, longer-term opportunities, primarily in Russia and the CIS Backed by strong strategic shareholders
Source: U.S. SEC filings, as of September 30, 2009
26 Continuous Market Outperformance
CTC Media’s Total Operating Revenue vs Russian TV Ad Market Dynamics
US$ mln % R – 42 CAG venue ’s Re 34% Media GR – CTC et CA 6,000 Mark 5,506 TV Ad 4,397 CTC Media’s Total Operating Revenue Russian TV Advertising Market1 4,000 3,160 2,330 2,000 1,700
472 640 156 238 371 0 2004 2005 2006 2007 2008
CTC Media outperformed the TV ad market by 8% annually on average
Source: (1) Russian Association of Communication Agencies, Video International
27 Reconciliation of Non-GAAP Measures (Group, Segment and Channel OIBDA)
Reconciliation of Group OIBDA and OIBDA Margin to Group Operating Income and Operating Income Margin
Three months ended Three months ended Three months ended Three months ended September 30, June 30, September 30, June 30, (US$ thousand) 2008 2009 2009 (US$ thousand) 2008 2009 2009
OIBDA $ 55,030 $ 38,201 $ 46,509 OIBDA margin 38.4% 35.7% 40.8% Depreciation and amortization Depreciation and amortization (exclusive of amortization of (exclusive of amortization of programming rights and sublicensing programming rights and sublicensing rights) as a % of total operating rights) (3,945) (2,858) (2,680) revenues -2.8% -2.6% -2.4% Operating income $ 51,085 $ 35,343 $ 43,829 Operating income margin 35.6% 33.1% 38.4%
Reconciliation of Segment OIBDA to Segment Operating Income1
Three Months Ended September 30, 2009 Three Months Ended September 30, 2008
Depreciation Operating Depreciation and Operating (US$ thousand) OIBDA and amortization income (US$ thousand) OIBDA amortization income
CTC Network$ 44,853 $ (243) $ 44,610 CTC Network $ 29,962 $ (95) $ 29,867 Domashny Network 3,300 (164) 3,136 Domashny Network 1,916 (72) 1,844 DTV Network Group 4,745 (622) 4,123 DTV Network Group 3,722 (708) 3,014 CTC Stations Group 10,997 (559) 10,438 CTC Stations Group 8,601 (515) 8,086 Domashny Station Group 1,461 (677) 784 Domashny Station Group 191 (348) (157) DTV Stations group (109) (1,016) (1,125) DTV Stations group (116) (856) (972) CIS Group (755) (268) (1,023) CIS Group (890) (177) (1,067) Production (404) (6) (410) Production 1,287 (40) 1,247 Busine ss se gme nt re sults $ 64,088 $ (3,555) $ 60,533 Busi ne ss se gm e nt re sul ts $ 44, 673 $ (2,811) $ 41,862 Eliminations and other (9,058) (390) (9,448) Eliminations and other (6,472) (47) (6,519) Consolidated results $ 55,030 $ (3,945) $ 51,085 Consolidated results $ 38,201 $ (2,858) $ 35,343
Reconciliation of Channel OIBDA to Channel Operating Income
Three Months Ended September 30, 2008 Three Months Ended September 30, 2009 Depreciation Depreciation and Operating and Operating (US$ thousand) OIBDA amortization income (US$ thousand) OIBDA amortization income
CTC Channel$ 55,850 $ (802) $ 55,048 CTC Channel $ 38,563 $ (610) $ 37,953 Domashny Channel 4,761 ($841) 3,920 Domashny Channel 2,107 ($420) 1,687 DTV Channel 4,636 ($1,638) 2,998 DTV Channel 3,606 ($1,564) 2,042
Note: (1) intersegment transactions are included in eliminations. Eliminations include corporate office results
28 Contact Information and Disclaimer
For further information please visit www.ctcmedia.ru or contact:
Ekaterina Ostrova Director, Investor Relations Tel: +7 (495) 783 3650 E-mail: [email protected]
DISCLAIMER The information contained in this presentation, including market data that are attributed to specific sources and have not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
The presentation is not an offer of securities for sale in the United States. Neither the presentation nor any copy of it may be taken or transmitted into or distributed in the United States of America or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”).
This presentation is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.
Certain statements in this presentation that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward- looking statements include, among others, the company’s ability to deliver audience share, particularly in primetime, to its advertisers; changes in the size of the Russian television advertising market; free-to-air television remaining a significant advertising forum in Russia; the company’s reliance on a single television advertising sales house for substantially all of its revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's latest quarterly report on Form 10-Q filed with the SEC. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
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