2. Forward looking statements
Forward-looking information and Safe Harbour Statement under the U.S. Private Securities Litigation Reform
Act of 1995
This report contains forward-looking information based on the current expectations of MTG management.
Although management deems that the expectations presented by such forward-looking information are
reasonable, such forward-looking information is subject to risks and uncertainties and no guarantee can be
given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably
when compared to what is stated in the forward-looking information, due to such factors as the prevailing
economic and business environments in certain markets and the impact of the Eurozone crisis in particular;
commercial risks related to expansion into new territories; political and legislative risks related to changes in
rules and regulations in the various territories in which the Group operates; exposure to foreign exchange rate
movements and the US dollar and Euro currencies in particular; and the emergence of new technologies and
competitors. These risks and uncertainties are described in more detail in the 2011 Annual Report, which is
available from the Group’s website at www.mtg.se and in the Group’s registration statement on Form 20-F,
which is available from the website of the U.S. Securities and Exchange Commission.
2
4. Second quarter 2012
Stable sales & increased cash flow
• Stable sales y-o-y at constant and reported FX
SEK mn
• OPEX up 1% y-o-y at constant and reported FX
4,000 40%
• EBIT before associated company income of 3,531 3,517
SEK 552 (593) mn 3,500 35%
• Total EBIT of SEK 684 (688) mn, including
3,000 30%
SEK 133 (95) mn of associated company
income
2,500 25%
• PTP of SEK 587 (681) mn including SEK -88 (30)
mn non-cash impact of change in value of option 2,000 20%
element of CDON convertible bond
1,500 15%
• Net income of SEK 454 (479) mn and Basic EPS
of SEK 6.35 (6.84) 1,000 10%
• Receipt of SEK 55 (84) mn of dividends from 593 552
CTC Media 500 5%
• Net cash flow from operations of SEK 728 (705) 0 0%
mn Q2 2011 Q2 2012
Revenue EBIT* EBIT margin
* EBIT excluding associated income
Q2 2012 RESULTS
4
5. First half year 2012
A period of investments
• Sales up 2% y-o-y at constant and reported FX
SEK mn
• OPEX up 4% y-o-y at constant and reported FX
8,000 40%
• EBIT before associated company income of
SEK 892 (1,025) mn 7,000 6,656 6,776 35%
• Total EBIT of SEK 1,226 (1,374) mn,
6,000 30%
including SEK 334 (349) mn of associated
company income
5,000 25%
• PTP of SEK 1,178 (1,352) mn including SEK -6
(34) mn non-cash impact of change in value of 4,000 20%
option element of CDON convertible bond
3,000 15%
• Net income of SEK 908 (969) mn and Basic EPS
of SEK 13.04 (14.19) 2,000 10%
• Receipt of SEK 107 (145) mn of dividends from 1,025 892
CTC Media 1,000 5%
• Net cash flow from operations of SEK 793 (828) 0 0%
mn H1 2011 H1 2012
Revenue EBIT* EBIT margin
* EBIT excluding associated income
Hq 2012 RESULTS
5
7. Free-TV Scandinavia
Financial Highlights
SEK mn
• Sales down 3% y-o-y in Q2 and 2% y-o-y for H1 at
constant FX 2,500 50%
• Negative effect on ratings of World Ice 2,169 2,134 45%
Hockey Championship and Euro 2012
2,000 40%
football Championship
• OPEX up 4% y-o-y in Q2 and 9% y-o-y for H1 35%
• Programming investments in Norway 1,500 30%
• Substantially lower y-o-y growth than in Q1 1,146 1,110 25%
• EBIT margin of 22.6% (27.8%) and 19.1% 1,000 20%
(26.7%) for the respective periods amongst
15%
highest in Europe 580
500 408 10%
• Sweden and Denmark profits up y-o-y 319
251
5%
0 0%
Q2 2011 Q2 2012 H1 2011 H1 2012
Revenue EBIT EBIT margin
Operating review
7
8. Free-TV Scandinavia
Operating Highlights
Commercial Audience Share (15-49)
Sweden
45%
• World Cup Ice Hockey Championship and Euro
37.6% 38.4%
2012 Football on competing channels impacted 40%
34.0% 34.9%
TV3 and TV6 33.4%
35%
• TV8 & TV10 slightly up y-o-y and slightly down q-
o-q 30%
25.7% 24.9% 25.0%
• TV3 benefits from a higher Swedish regional TV 25% 23.1% 22.2%
advertising sales
20% 23.7%
Norway 20.7% 19.2%
19.5%
15% 18.6%
• Norwegian media house improved its planning
and execution and fall schedule now announced 10%
• Work ongoing to enhance the TV3 brand 5%
Denmark
0%
• TV3 CSOV up y-o-y, but TV3+ negatively
impacted by Euro 2012 Football on competing
channels. TV3 PULS CSOV up q-o-q
Sweden Norway Denmark
Operating review
8
9. Pay-TV Nordic
Financial Highlights
SEK mn
• Sales up 5% y-o-y in Q2 and 7% y-o-y for H1 at
constant FX 3,000 50%
• OPEX up 7% y-o-y in Q2 and 9% y-o-y for H1 45%
2,499
• Ongoing investments in Viaplay, higher y-o- 2,500 2,325 40%
y content costs and marketing for the newly
rebranded Viasat film channels and 4 new 35%
2,000
HD movie channels 30%
• EBIT margin of 17.9% (19.2%) and 17.6% (19%)
1,500 1,250 25%
for H1 1,186
20%
1,000
15%
443 441 10%
500
228 223 5%
0 0%
Q2 2011 Q2 2012 H1 2011 H2 2012
Revenue EBIT EBIT margin
Operating review
9
10. Pay-TV Nordic
Operating Highlights
Premium subscribers
• Premium subscriber base down q-o-q 1,200
• Decline in satellite premium subscriber 1,000
base offset to an extent by growing third 800
Thousands
party network subscriber base 600
• Premium satellite ARPU up 7% y-o-y in Q2 to SEK 400
4,926 (4,594) 200
• Continued growth in penetration of value 0
added services
• Impact of previously introduced price
increases
Satellite subscribers 3'rd party network subscribers
• Continued development of Viaplay
• Strengthened content offering Value added services
350
• Launch of first of its kind hybrid internet- 300
enabled and DTT set-top box in Sweden in 250
Thousands
June 200
150
100
50
0
Operating review
ViasatPlus HDTV Multi-room
10
11. Free-TV Emerging Markets
Financial Highlights
SEK mn Free-TV Emerging Markets
• Total sales down 3% y-o-y in Q2 and stable y-o-y
for H1 at constant FX 1,200 50%
1,018 992
• Excluding Slovenia, sales down 1% y-o-y in 1,000 40%
Q2 and up 2% y-o-y for H1 at constant FX 800
598 30%
• OPEX down 11% y-o-y in Q2 and 9% y-o-y for H1 560
600
• Closing down of Slovenian broadcasting 20%
400
and ending of amortisation of Bulgarian and
Czech licenses 200 10%
73 91 100
41
• EBIT margin of 16.3% (12.1%) in Q2 and 10% 0 0%
(4.1%) for H1 Q2 2011 Q2 2012 H1 2011 H2 2012
• Baltic, Czech & Bulgarian sales stable y-o-y in Revenue EBIT EBIT margin
Q2 at constant FX SEK mn Baltics, Czech Republic & Bulgaria
1,000 901 909 50%
• Combined OPEX down 5% y-o-y in Q2 and 4% for
H1 800 40%
531 516
• EBIT margin of 20% (18%) in Q2 and 14.3% 600 30%
(10.3%) for H1 400 20%
200 96 103 93 130 10%
0 0%
Q2 2011 Q2 2012 H1 2011 H2 2012
Revenue EBIT EBIT margin
11
12. Free-TV Emerging Markets
Operating Highlights
Baltics Commercial Audience Share
• Sales up 5% y-o-y in Q2 and 4% y-o-y for H1 at 50%
constant FX
• Stable pan-Baltic commercial target audience
share of 40.5% (40.4%) 40%
• TV ad market shares up in Estonia and Latvia,
and stable in Lithuania 30%
Czech Republic
• Sales down 2% y-o-y in Q2 but up 5% y-o-y for H1
20%
at constant FX
• Further market share gains following continued
significant audience share gains 10%
Bulgaria
• Sales stable in Q2 y-o-y and down 3% y-o-y for
H1 at constant FX Estonia (15-49) Latvia (15-49)*
• Lower market shares in Q2 following lower ratings Lithuania (15-49) Czech Republic (15-54)
due to the airing of Euro 2012 on competing Bulgaria (18-49)
channels
Operating review
* MTG will include the LNT channels in its reported
combined CSOV in Latvia with effect from Q3 2012
12
13. Pay-TV Emerging Markets
Financial Highlights
SEK mn
• Sales up 12% y-o-y in Q2 and 13% y-o-y for H1 at
constant FX 600 50%
• Growth driven by mini-pay in Russia and 524 45%
Baltic, Ukrainian and Russian satellite 500
platforms 445 40%
• OPEX up 3% y-o-y in Q2 and 4% y-o-y for H1 35%
400
• Ongoing investments in the satellite
platforms to drive subscriber intake 30%
• Lower costs for the wholesale mini-pay 300 25%
273
channel business
230 20%
• EBIT more than doubled y-o-y in Q2 and more
than tripled for H1 200
15%
• EBIT margin of 21.1% (9.3%) in Q2 and
17.5% (6.5%) for H1 10%
100 91
• Positive FX effects in the quarter 58 5%
22 29
0 0%
Q2 2011 Q2 2012 H1 2011 H2 2012
Revenue EBIT EBIT margin
Operating review
13
14. Pay-TV Emerging Markets
Operating Highlights
Satellite subscribers
• 96,000 net new subscribers added y-o-y 600 30%
• Same seasonal pattern as in 2011 500 25%
• Addition of sports content and launch of
Thousands
400 20%
two new Viasat Sports premium pay-TV 300 15%
channels in the Baltics
200 10%
• Successful launch of HD offering in
100 5%
Ukraine
0 0%
• Wholesale mini-pay business added nearly 12
mn subscriptions y-o-y and nearly 7 mn q-o-q
• Continued growth in the Russian market Satellite subscribers Subscriber growth y-o-y
in particular
Mini-pay TV subscriptions
80,000
Thousands
70,000
60,000
50,000
Operating review
40,000
Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
14
15. Other Businesses
Highlights
SEK mn
• Comprised MTG’s Radio, Bet24 and MTG Studios
operations 900 852
804
• Sales of SEK 397 (452) mn in Q2 and SEK 804 800
(852) mn for H1
700
• Down 13% y-o-y in Q1 and 6% for H1 at
constant FX 600
• Reflects discontinuation of Bet24 from 3
500
May 452
397
• Lower y-o-y sales for the Swedish radio 400
business and MTG studios to some extent
300
offset by growth for the Norwegian radio
business 200
• Combined OPEX down 4% y-o-y in Q2 and up 3%
100 64
y-o-y for H1 44 -9
5
• Lower sales from Swedish radio and 0
increased costs for MTG Studios offset to Q2 2011 Q2 2012 H1 2011 H1 2012
-100
an extent by net gain from sale of Bet24
Revenue EBIT
Operating review
15
16. Looking ahead
Free-TV Scandi & Nordic Pay-TV
• Free-TV Scandinavia
• The outlook for the reminder of 2012 is for continued TV advertising market growth in Sweden
and Norway, but less clear picture for Denmark
• Our objective is to take back and increase Scandinavian advertising market shares but more to
do with execution than incremental investments
• We therefore anticipate that full year OPEX will grow at normalized mid-single digit percentage
point level, rather than previously anticipated mid to high single digit percentage point levels
• Nordic Pay-TV
• We continue to expect sales growth to be driven by rising satellite premium ARPU and 3rd party
network subscriber growth
• Now is the time to invest in our linear channels and the Viaplay on-demand service to drive
further growth, which is why we are adjusting our anticipated full year operating margin from
approximately 18% to approximately 17%
Operating review
16
17. Looking ahead
Emerging markets operations
• Free-TV Emerging markets
• As before, we are yet to see any trend shift in competitor behavior or a return to growth in
advertising spending or pricing
• However, costs are down and we do not see the need to increase our level of investment
beyond what we have already done ahead of a return to sustained market growth
• We are now restructuring and integrating the recently acquired LNT free-TV operations in Latvia
so the reduction in operating costs will be significantly lower in the second half of the year than
the first half
• Pay-TV Emerging markets
• We expect continued subscriber intake in 2012 on the satellite platforms and continued growth
of mini-pay subscriptions
• As before, we also continue to expect higher full year profits in 2012 than 2011 but that the
increase in H2 will be lower than the more than 200% increase in H1
• This reflects the fact that now is the time to invest in our premium content and channel offering,
and the roll-out of Viaplay in Russia, in order to drive future growth
Operating review
17
19. Income Statement
Q2 Q2 H1 H1
• Lower y-o-y depreciation & (SEK mn) 2012 2011 2012 2011
amortisation charges of SEK 28 (50) Net sales 3,517 3,531 6,776 6,656
mn in Q2 and SEK 56 (99) mn for H1
following ending of amortisation of EBIT before associated
552 593 892 1,025
company income
Czech and Bulgarian broadcasting
licensees Associated company income 133 95 334 349
• Net interest charges down y-o-y to EBIT 684 688 1,226 1,374
SEK -8 (-14) mn in Q2 and SEK -24 Net interest & other financial
-98 -7 -48 -22
(-28) mn for H1 items
Income before tax 587 681 1,178 1,352
• Y-o-y change in other financial items
included Tax -133 -202 -270 -383
• SEK -88 (30) mn non-cash Net income 454 479 908 969
financial impact in Q2 and Basic EPS 6.35 6.84 13.04 14.19
SEK -6 (34) mn for H1 from
the change in value of the Diluted EPS 6.34 6.79 12.99 14.10
option element of the SEK 250
mn CDON Group convertible
bond mn
• Tax charges of SEK 133 (202) mn in
Q1 and SEK 270 (383) mn for H1
• Underlying effective tax rate of
Financial Review
26% in Q2 and H1
19
20. Cash Flow
• Cash flow from operations included Q2 Q2 H1 H1
(SEK mn) 2012 2011 2012 2011
receipt of SEK 55 (84) mn of dividend
payments from CTC Media in Q2 and Cash flow from
SEK 107 (145) mn for H1 501 528 835 989
operations
• Investment in shares amounted to SEK
Changes in working
100 (-) mn and comprised the acquisition capital
227 178 -42 -162
of the LNT free-TV business in Latvia
• Other cash flow from investing activities Net cash flow from
728 705 793 828
of SEK 61 (-) mn comprised the majority operations
of the net cash to be received from the
sale of the Bet24 operations Cash flow used in
-58 -20 -57 -52
investing activities
• CAPEX less than 1% of Group net sales
in Q1 and for H1 Cash flow used in
-582 -646 -528 -834
financing activities
• Cash flow used in financing activities
included dividend payment of SEK 600 Net change in
(498) mn cash & cash 88 40 207 -58
equivalents
Financial Review
20
21. Financial Position
• Total borrowings of SEK 1,677 (2,382) mn as at 30 Jun 30 Jun
30 Jun 2012 and cash balance of SEK 675 (SEK mn) 2012 2011
(424) mn
Non-current assets 5,884 8,909
• Net debt of SEK 778 (1,716) mn as at 30 Jun
Current assets 5,815 5,525
2012 and available liquid funds of SEK 5,655
(4,682) mn 11,699 14,434
Total assets
• SEK 2,170 (1,940) mn book value of 37.9%
shareholding in CTC Media and public equity
Shareholders’ equity 4,714 6,833
market value of SEK 3,345 mn
Long-term liabilities 2,309 3,020
Net debt / EBITDA ratio
Current liabilities 4,676 4,581
1.2 1.2
1.1 11,699 14,434
Total equity & liabilities
0.8
0.7 0.7
0.6
0.3 0.3 0.3
Financial Review
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
10 10 10 10 11 11 11 11 12 12
21