6. jorgen madsen extending the media house

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1.

Born 1966

Joined MTG in 1994

What I love: High ratings / challenging the

status quo

What I hate: Losing market share / wasted

talent

Quote: “Ready on the Day.”

Jørgen

Madsen

EVP of Nordic

Broadcasting

3

Established footprint

TV Households (2011): 2,137,000

Viewing time/day (2011): 166 min

TV Ad Market Size (2011): SEK 3.8 billion

Free-TV Norway

TV Households (2011): 2,502,000

Viewing time/day (2011): 198


Free-TV Denmark

TV Households (2011): 4,731,440

Viewing time/day (2011): 162


Free-TV Sweden

4

Best in class growth & margin

21.90%

21.20%

25.90%

24.50%

20%

22%

24%

26%

28%

30%

3,000,000

3,200,000

3,400,000

3,600,000

3,800,000

4,000,000

4,200,000

4,400,000

4,600,000

2008 2009 2010 2011

’000 SEK

Margin Tot Revenue

5

Revenue breakdown

20%

35%

45%

90

100

110

120

130

140

150

160

170

180

190

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

6

Stable macro backdrop

GDP Growth (indexed)

*

* Europe 27 incl. Russia

7

But massive change in TV

landscape

Sweden – 1 Feb 2008

Denmark – 1 Nov 2009

Norway – 1 Dec 2009

Scandinavian TV landscape

(2011)

Cable 52% Satellite

19%

DTT 19%

IPTV 9%

Cable 55%

Satellite 19%

DTT 7%

Analogue Terrestrial

20%

Scandinavian TV landscape

(2005)

8

Which has contributed to

fragmentation

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SWEDEN DENMARK NORWAY

Competing for 162

viewing minutes per day

Competing for 198


Competing for 166


http://images4.wikia.nocookie.net/__cb20091205184106/tvkanal/da/images/a/a7/TV3_(SE).png

130

140

150

160

170

180

190

200

9

But also increased overall TV

viewing

Average Viewing Time per Day (minutes)

2007 2011

+ 5 minutes

+ 50 minutes

+ 21 minutes

10

But there is still some way to go

Average Viewing Time per Day (minutes)

100

120

140

160

180

200

220

240

260

280

300

11

The explosion in online viewing

is creating additional reach

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

ComputerScreen

Mobile Phone TV-screen Tablet

92%

83%

1%

1%

16%

7%

Viewing platform in Sweden

Traditional TV Web-TV Mobile-TV

Viewing by Device in Sweden

Age 15-74

Age 15-24

+16%

+77%

+54%

+278%

Q1 2011 Q1 2012

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

12

And the camp fire is still burning

People watching TV in Sweden (thousands, 2011) TRPs Generated

in Sweden (2011)

68%

32%

Prime Time Daytime

60

70

80

90

100

110

120

2008 2009 2010 201175%

80%

85%

90%

95%

100%

2008 2009 2010 2011

13

And the demand is clearly still

there

Market Sold Out Ratios in prime time Market cost per thousand (indexed)

80

90

100

110

120

130

140

150

160

2004 2005 2006 2007 2008 2009 2010 2011

14

And driving overall TV ad market

growth

15

And TV’s share of the advertising

pie

2011

2008

Sweden Denmark Norway

20.0%

22.1%

17.2%

19.2%

19.5%

20.9%

16

But there remains some way to

go

22.1% 19.2% 20.9%

40.2% 30.1% 31.7%


US UK Europe

Top 5 Clients

1. FMCG

2. FMCG

3. FMCG

4. Leisure

5. Telco

17

With a diverse & stable client

base

Annual Commitments International Clients


1. Mobile operators

2. Retail

3. Food

4. Beverages

5. Pharmaceuticals

Top 5 Clients

1. Telco

2. FMCG

3. FMCG

4. Telco

5. FMCG

Top 5 Clients

1. FMCG

2. FMCG

3. FMCG

4. Leisure

5. Telco

30%

70% 75%

25% Annual

Ad Hoc

International

Domestic

Media Agency

Direct Buy

Media Agency

Direct Buy

Media Agency

Direct Buy 93% 93% 90%

Top 5 Segments

18

That we are working with in

new ways

Client Segmentation

Win/Lose Win/Win

Lose/Lose Lose/Win

Advertiser

ROI

High

High Low

Broadcaster ROI

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

19

And Seize The Online

Opportunity

Launched: 2009 2009 2009 2010 2010 2012

Number of Started Streams

Week 1-20 2011 Week 1-20 2012

80,000

90,000

100,000

110,000

120,000

130,000

140,0001.

2.

3. 4. 5.


Top 5 shows by web audience* 2012

* MMS

Web audience: Publ. date + 7 days

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

20

By offering web exclusive shows

Started streams per episode by web audience*

* MMS

Web audience: Publ. date + 7 days

21

And providing tailor-made

solutions

Branded player Editorial integration

+

Campaign click rate: 6% Average click rate: 2%

Editorial integration sold per second

• Customer sales up 70%

• And now a recurring customer with TV3Play Sweden

0

50

100

150

200

250

2010 2011 2012

22

With growing online sales

Online ad sales growth (index)

Print, 63% Direct advertising,

14%

Internet, 14%

Radio, 4% TV, 5%

23

And also creating competition

in existing market segments

TV4, 87% MTG, 7%

Other, 6%

Regional share of total advertising

(NOK / DKK / SEK billion)

50% 40% 60%

0

5

10

15

Total regional advertising

Regional TV advertising

SEK 14 bn

SEK 700 mn

• Number of regional TV3 Sweden broadcast zones

increased from 6 to 19 on February 27th 2012

• Bundled TV, Radio & Internet Ad sales package with

dedicated sales force of 120 people as of March 2012

• Local Ad prices as much as 2.13x national prices

And offering a unique reach

24

25

And developing non-advertising

revenue streams

Carriage deals

20%

Advertising Mini-pay

Revenue mix (2011)

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011

26

But, ultimately, it is all about

ratings

CSOV 15-49 Perceived penetration (not actual)

2008 2011

86% 88%

2008 2011

86% 88%

2008 2011

39%

66%

2008 2011

0% 47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Bonnier MTG SBS

27

And the media house is growing

Average Weekly Reach

2003 2011

Old & Male Old & Female

Young & Male Young & Female

Channel Profiles

28

What we’re doing in Sweden

• Recruited better people & brought in external experts

• Extended planning horizon

• Improved overall scouting, commissioning & scheduling

• Enhanced piloting & feedback

• Focused schedules on local & live entertainment programming

• Broadened & deepened schedules with proven local & international formats

• Reduced risk profile by focusing away from “big bet” new OPs

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011

29


ratings


2008 2011

65% 66%

2008 2011

63% 60%

2008 2011

0%

45%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TV2Gruppen

MTG SBS

30



2003 2011



Channel Profiles

31

What we’re doing in Denmark

• More of the same

• Not about challenging TV2 but maintaining distance from SBS






0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011

32


ratings


2008 2011

85%

92%

2008 2011

62% 75%

33



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TV2Gruppen

MTG SBS

2003 2011



Channel Profiles

34

What we’re doing in Norway

• Made management changes






• Reduced risk profile by focusing away from “big bet” new OPs

• Continue to seek opportunity to expand differentiated channel offering

35

SH

OW

RE

EL

80

90

100

110

120

130

140

150

2008 2009 2010 2011 2012 2013 2014 2015

80

90

100

110

120

130

140

150

2008 2009 2010 2011 2012 2013 2014 2015

80

90

100

110

120

130

140

150

2008 2009 2010 2011 2012 2013 2014 2015

36D

Summary

GDP Growth Total Ad Market Growth TV Ad Market Growth

• GDP growth + Total ad market growth +

TV ad market growth

• + audience share gains

• + channel launches

• +penetration gains

• + AVOD

• + mini-pay

• = long term sustained market

outperformance

37

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Investor Relations

6. jorgen madsen extending the media house