Investor Presentation June 2009

Transcription

1 Investor Presentation June 2009

2 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 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 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 impact of any additional investments we make in our Bulgaria, Croatia and Ukraine operations; our effectiveness in implementing our strategic plan for our Ukraine operations or our Bulgaria operations; the successful completion of our private placement transaction with an affiliate of Time Warner Inc.; our ability to make future investments in television broadcast operations; our ability to develop and implement strategies regarding sales and multichannel 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. In our presentations for each of our segments we do not reconcile Segment net revenues and Segment EBITDA that are provided in local currency to their US GAAP equivalents as the US GAAP amounts included in our financial statements are expressed in US$. 2

3 We are the leading CEE broadcaster Market, audience and brand leadership Strong local content Eighteen networks in seven markets Growing internet presence Sound balance sheet and liquidity Strong medium-term growth expectations 15 years of experience in the region Pan-regional portfolio Proxy for consumer spending growth Transparency of NASDAQ and Prague listings Established market Developing market 3

4 We are leaders in our core markets 1 Leadership charts for four of our leading markets 1 January 31 March 2009 Czech Republic Romania Urban Slovakia Slovenia 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 00:00 NOVA Group CT Pro TV SA Kanal D Markíza JOJ Group POP TV + Kanal A SLO1 + SLO2 Intact Group Realitatea Media STV Sources: ATO Mediaresearch, TNS-AGB INTL, PMT/TNS SK, AGB Nielsen Media Research 4 1 Core markets: Czech Republic, Romania, Slovak Republic, Slovenia and Croatia

5 Local content drives station leadership In core markets 1, our leading stations have over 50% local prime time content Our stations produced 28,000 hours of fiction, news, public affairs and entertainment in We develop and produce original drama, sitcoms, soaps, telenovelas and TV movies. Our local content outperforms acquired programming and strengthens our library. Top 20 shows in the Czech Republic - All channels March 2009 No. Show Channel Share (15-54) Rating (15-54) 1 Ordinace v růžové zahradě 2 (local fiction)* NOVA Medvídek (movie) NOVA Televizní noviny (News)* NOVA Sportovní noviny (sports news)* NOVA Výměna manželek (reality show)* NOVA Počasí (weather news)* NOVA Comeback (local fiction)* NOVA Kameňák 3 (movie) NOVA Strěpiny (Local curent affairs)* NOVA Pán domu (comedy action movie) NOVA Next (movie) NOVA Vikěnd (current affairs)* NOVA Kameňák (movie) NOVA Mission Impossible 3 (movie) NOVA Proč bychom se netopili (movie) ČT Kameňák (movie) NOVA Ďáblova lest (movie) ČT Kriminálka New York (series) NOVA Druhá šance (reality show)* NOVA Ulice (local fiction)* NOVA Source: ATO Mediaresearch. For daily and weekly shows the audience shares and ratings are averages for the whole month. * Produced by TV Nova 5 1 Czech Republic, Romania, Slovakia and Slovenia and Croatia

6 Leadership generates strong power ratios 2008 All Day Audience Share and Revenue 1 Share 1.9x 1.9x 1.7x 2.3x 1.6x 1.4x Audience Share x Power Ratio = Revenue 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, Peoplemeters Taylor Nelson Sofres and Ukraine, Peoplemeters GFK USM. Revenue share: CME Segment Revenue data and CME estimate of Segment market size. 1 Advertising revenues including spot revenue and sponsorship. 6

7 We are growing leadership in internet 1.8 million average daily unique users at end of March % growth since million video downloads and streaming at end of March 2009, 73% growth year on year Collaboration with Microsoft in Slovenia and Croatia to cross-promote our websites Bulgarian operations became first in the market to launch live sport streaming, driving traffic Leadership in Romania and Slovenia in terms of unique users All CME Acquisition of Jyxo and Blog.cz Launch of Catch up TV in Czech Republic Unique users (m) Launch of tn.cz Holiday period Romanian news websites drive traffic Source: Gemius

8 TV is a stronger advertising medium in our markets Breakdown of total advertising spend in % Other Internet Radio Outdoor Print TV 80% 60% 40% 20% 0% Romania Slovenia Bulgaria Croatia Slovak Republic Source: Group M At December 31, 2008 exchange rates Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. Czech Republic Ukraine CME countries Western Europe 8

9 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% Advertising intensity is still low Total advertising spend / GDP in % Slovenia Romania Slovak Republic Czech Republic Croatia Ukraine Bulgaria CME countries Source: CME estimates, Group M, Global Insight At December 31, 2008 exchange rates Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK Western Europe

10 Ad spend per capita has significant growth headroom Total advertising spend per capita in $ $73.0 $83.8 $88.5 $ $22.5 $36.3 $46.7 $ Ukraine Romania Bulgaria Croatia Slovak Republic Source: CME estimates, Group M, Global Insight At December 31, 2008 exchange rates Slovenia Czech Republic CME countries Western Europe 10

11 Increase in high-end ads fuels growth UK TV Market Advertiser Portfolio TV Nova, Nova Sport, Nova Cinema Pro TV, Acasa, Pro Cinema, Sport.ro, MTV Romania TV Markíza Pop TV, Kanal A Nova TV Studio 1+1, Kino TV2, Ring TV 49% 43% Finance, Automotive, Entertainment, Media, Leisure, Travel, Transport & Distribution Food, Telecoms, Cosmetics, Toiletries, Household & Cleaners Czech Republic (EU) Romania (EU) Slovak Republic (EU) Slovenia (EU) Croatia Ukraine Bulgaria (EU) 29% 22% 37% 29% 38% 11% 29% 63% 77% 62% 69% 60% 84% 48% 8% Other 8% 1% 1% 2% 2% 5% 23% 100% 100% 100% 100% 100% 100% 100% 100% Source: UK TV Market World Advertising Research Center (Marketing Pocketbook) and CME estimates (2008). 11

12 East/West structural disparities support convergence TV advertising spending indices Eastern Europe Western Europe Source: Group M At actual rates 1 Original stations comprise operations in Romania, Slovak Republic, Slovenia and Ukraine. CAGR = Compound Annual Growth Rate Eastern Europe: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovak Republic, Slovenia and Turkey Western Europe: Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Portugal, Spain, Sweden, UK 12

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14 Riding out the storm Business conditions in our markets in 2009 and 2010 will be harsh. We believe the ad spend decline will bottom between Q and Q The fundamentals supporting strong medium-term growth are unchanged. We have the liquidity strength to sustain our core strengths. Our leading assets will leverage growth when the markets rebound. 14

15 Our goals for 2009 are clear Maintain audience share leadership while reducing costs Maximize and diversify revenue sources Advertising Internet Content Distribution Subscription Management services Sustain liquidity security Time Warner Equity Ukraine, Bulgaria funding solution Review revolving facilities Reduce costs and capex 15

16 In a difficult Q1 we focused on our key tasks Tasks Results Improve liquidity Time Warner agreed investment of US$ 241m Address funding issues of Ukraine and Bulgaria Maintain leadership in core markets 1 Stimulate ad spending by adjusting sales policy Reduce operating costs and capex Restructure the corporate functions Various options under review Increased prime time audience share in most core markets between 1 2 percentage points Increased advertising market share in all core markets between 1 4% 10% local currency cost reduction (excluding Bulgaria); US$ 16m reduction in capex (67%) New central function in place; 30% full year cost savings estimated 16 1 Core markets: Czech Republic, Romania, Slovak Republic, Slovenia, Croatia All comparisons are year on year

17 Time Warner strategic partnership secures our liquidity On 23 rd March 2009, Time Warner and CME announced the investment of US$ 241.5m in CME by Time Warner. The market responded very positively to this announcement. Benefits of CME Time Warner Partnership Will strengthen CME s liquidity, expanding our operational and financial options Will bring new resources for channel development a key component of CME s broadcasting strategy Will complement CME s content strengths 17

18 Our strategy capitalizes on our strengths Position to maximize growth when markets recover 18

19 19 Q&A

20 What are your markets? 2008 Macro Data Czech Republic (EU) Romania (EU) Slovak Republic (EU) Slovenia (EU) Bulgaria 1 (EU) Croatia Ukraine Population 10.2m 21.3m 5.4m 2.0m 7.6m 4.6m 45.9m TV Ad Market Size $490m - $500m $465m - $475m $210m - $215m $100m - $105m $175 - $185m $155m - $165m $450m - $460m GDP/Capita $22,575 $8,983 $17,994 $27,864 $6,154 $13,491 $3,928 Segment Revenue by geography (2008) Segment EBITDA by geography (2008) Bulgaria (3%) Croatia (2%) Ukraine (12%) Corporate (17%) Net Revenue US$1,019.9m EBITDA US$296.9m Source: CME estimates and Global Insight. 1 TV2 and Ring TV in Bulgaria were acquired in August

21 Who are your advertising clients? Revenue share of Top 10 Advertising clients 2008 Bulgaria (EU) 31% Croatia Czech Republic (EU) Romania (EU) Slovak Republic (EU) Slovenia (EU) Ukraine 32% 29% 26% 36% 28% 36% Emergence of new advertising categories and local advertisers will drive future growth 21

22 2,000 How high are your costs? 2008 Cash opex per thousand viewers in US$ 000 1,500 US$ 1, CME Ukraine CME Romania CME Czech R. CME Croatia CME Slovak R. CME Slovenia TF1 ProSieben Sat1 ITV 22 Data calculated by CME based on 2008 all day ratings for each station and total broadcasting operating expenses (Revenue EBITDA). Source: Bloomberg, CME, company annual reports.

23 Why is your multichannel strategy important? Our main network in each market supports profitable thematic channels Mass audience Existing infrastructure Content optimisation Cross promotion Cross selling Multichannel penetration is increasing as new technologies develop Multichannel penetration % No. of CME channels Source: Mediametrie / Eurodata TV Worldwide 23

24 What does the multichannel environment look like? Major Platforms Distribution Method Subscribers Channels available 2 Monthly cost Penetration US$ 3 DTH Cable DTT Bulgaria BulSatCom CableTel DTH Cable % 60% - Croatia Digi TV B.Net DTH Cable % 16% - Czech Republic UPC Direct Digi TV CS Link UPC C.R. Telefonica O2 DTH DTH DTH Cable Cable (one off fee) % 23% 6% Romania Digi TV Max TV Focus Sat Dolce TV Boom TV UPC Romania RDS-RCS DTH DTH DTH DTH DTH Cable Cable ,222 1, % 67% - Slovakia UPC Direct Digi TV Skylink UPC Slovakia DTH DTH DTH Cable (one off fee) 7 29% 43% - Slovenia Total TV UPC Telemach DTH Cable % 65% - Ukraine NTV-Plus MTG VoliaCable DTH DTH Cable 50 Newly launched % 32% - Source: Informa and Platform Company data. 1 As at end As at April Basic package, as at April Penetration of TV households. 24

25 When will you have to renew broadcast licenses? Broadcast license renewals Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia Ukraine History of renewals & renewal process Analogue license expires in May be extended for up to an additional 15 years. Analogue license expires in License expected to be tendered on renewal. License expires in Nova Sport license expires in Nova Cinema satellite license expires in 2019 All licenses renewed on rolling basis. Analogue license expires in Analogue licenses expire in Digital licenses obtained. Analogue 15 hour license (including prime time) expires in Analogue offprime license expires in Ownership of broadcast license 80% 100% 100% 95% 100% 100% 100% 25

26 Are there any regulatory changes affecting your business? New EU Directive Commercial breaks Allowed every 30 mins during news, films, children s programming or TV films Ad breaks Allowed at any interval for all other programs Previously Once every 45 minutes for programs >45 minutes At least 20 minutes Product placement Some permitted on TV shows Banned Member states must implement by end of

27 2727 Station Review Broadcast operations

28 2828 Czech Republic TV Nova, Nova Cinema, and Nova Sport

29 Czech Republic TV Nova, Nova Cinema and Nova Sport 2008 Statistics TV Nova Nova Cinema Nova Sport Audience Share January March 2009 Launched: Ownership: 100% 100% 100% Licence expiry: Technical reach: 97% 21% 14% CT1 18% CT2 5% TV Nova 46% Distribution method: Free-to-Air, Satellite & Digital Cable, Satellite & Digital Cable & Satellite Hours broadcast daily Others 12% Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 38% 1% 3% 57% 3% 4% ATO Mediaresearch TV Prima 17% Nova Cinema 2% Source: ATO Mediaresearch Prime Time Audience Target Group Source: CME 1 Acquired by CME in May Acquired by CME in September

30 Czech Republic Prime Time Audience Share Trends Source: ATO Mediaresearch Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (CZK m) 1, ,443.6 (18%) 6, , % EBITDA (CZK m) (26%) 3, , % Net revenues (USD m) (35%) % EBITDA (USD m) (42%) % EBITDA Margin % 46% 52% 57% 56% The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008.

31 Romania Pro TV, Acasa, Pro Cinema, Sport.ro, MTV Romania and Pro TV International 3131

32 Romania Pro TV, Acasa, Pro Cinema, Sport.ro and MTV Romania 2008 Statistics PRO TV Acasa Pro Cinema Sport.ro MTV Romania 2 Audience Share January March 2009 Launched: Ownership: 95% 95% 95% 95% 95% Pro TV 21% License expiry: Technical reach: 99% 90% 75% 64% 56% Others 36.5% Distribution method: Free-to-Air, Satellite & Cable Cable & Satellite Cable & Satellite Cable & Satellite Cable & Satellite Hours broadcast daily: Locally produced content: (% of broadcast time) Prime-time locally produced content (% of broadcast time): 48% 42% 21% 43% 55% 51% 34% 1% 56% 46% Kanal D 6% Prima TV 7% Antena 1 13% TVR 1 3% Acasa 10% Sport.ro 1.4% Pro Cinema 1.7% MTV 0.4% Local audience ratings agency: TNS-AGB INTL Source: TNS-AGB INTL Prime Time Audience Target Group Urban 1 Acquired by CME in March 2007 and re-launched as Sport.ro in April License for MTV Romania acquired in December Source: CME. 32

33 Romania Prime Time Audience Share Trends Urban Source: GfK Romania Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (RON m) (18%) % EBITDA (RON m) (56%) % Net revenues (USD m) (38%) % EBITDA (USD m) (68%) % EBITDA Margin % 21% 41% 41% 44% The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008.

34 3434 Slovak Republic TV Markíza and Nova Sport

35 Slovak Republic TV Markíza 2008 Statistics TV Markíza Audience Share January March 2009 Launched: 1996 Ownership: 100% Licence expiry: 2019 Others 23% Markíza 33% Technical reach: 99% Distribution method: Free-to-Air Hours broadcast daily 24 Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 27% 56% PMT / TNS SK TV JOJ 22% STV 2 4% STV 1 18% Source: PMT / TNS SK Prime Time Audience Target Group Source: CME..

36 Slovak Republic Prime Time Audience Share Trends Source: PMT /TNS SK Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (EUR m) (17%) 2, , % EBITDA (EUR m) (54%) 1, , % Net revenues (USD m) (22%) % EBITDA (USD m) (58%) % EBITDA Margin % 19% 36% 39% 38% The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31,

37 Slovenia POP TV and Kanal A 3737

38 Slovenia POP TV and Kanal A 2008 Statistics POP TV Kanal A Audience Share January March 2009 Launched: Ownership: 100% 100% Licence expiry: Others 21% POP TV 32% Technical reach: 96% 94% Distribution method: Free-to-Air & Cable Free-to-Air & Cable Hours broadcast daily Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 32% 35% 52% 11% AGB Nielsen Media Research TV3 6% SLO 2 6% SLO 1 20% TV PIKA 2 1% Source: AGB Nielsen Media Research Prime Time Audience Target Group KANAL A 14% 38 1 Kanal A was acquired by CME in October We own a 20% interest in TV Pika. Source: CME.

39 Slovenia Prime Time Audience Share Trends Source: AGB Nielsen Media Research Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (EUR m) (12%) % EBITDA (EUR m) (26%) (2%) Net revenues (USD m) (25%) % EBITDA (USD m) (37%) % EBITDA Margin % 24% 28% 32% 36% 39 The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008.

40 4040 Croatia Nova TV

41 Croatia Nova TV 2008 Statistics Nova TV Audience Share January March 2009 Launched: Ownership: 100% Others 9% Nova TV 26% Licence expiry: 2010 Technical reach: 89% Distribution method: Free-to-Air, Satellite & Cable Hours broadcast daily 22 Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 35% 54% AGB Nielsen Media Research RTL 29% HTV2 13% HTV1 23% Source: AGB Nielsen Media Research Prime Time Audience Target Group Source: CME 1 Nova TV was acquired in July

42 Croatia Prime Time Audience Share Trends Source: AGB Nielsen Media Research Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (HRK m) % % EBITDA (HRK m) 1.6 (12.7) - (16.2) (70.2) 77% Net revenues (USD m) (12%) % EBITDA (USD m) 0.2 (2.6) - (3.5) (13.8) 75% EBITDA Margin % 2% (23%) (6%) (37%) The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008.

43 4343 Ukraine STUDIO 1+1, STUDIO 1+1 International and KINO

44 Ukraine STUDIO 1+1, and KINO 2008 Statistics STUDIO 1+1 KINO Audience Share January March 2009 Launched: Ownership: 100% 2 100% Licence expiry: 2016 (15 hours prime) 2014 (9 hours off prime) Technical reach: 99% 53% Others 34% Studio % Kino 1% Inter 16% Distribution method: Free-to-Air, Satellite & Cable Free-to-Air & Cable Hours broadcast daily Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 56% 17% 35% 27% GFK USM Channel Ukraine 7% STV 9% ICTV 10% Novy Kanal 12% Source: GFK USM Prime Time Audience Target Group CME acquired 100% of KINO in February CME acquired 100% of Studio 1+1 in Source: CME 44

45 Ukraine Prime Time Audience Share Trends (Population 50K+) Source: Peoplemeters GFK USM Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (UAH m) (67%) (18%) EBITDA (UAH m) (96.9) (12.6) (669%) (206.3) Net revenues (79%) (22%) EBITDA (12.0) (2.5) (379%) (33.2) EBITDA Margin % (246%) (11%) (33%) 19% The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31,

46 4646 Bulgaria Ring TV and TV2

47 Bulgaria TV2 and Ring TV 2008 Statistics TV2 Ring TV Audience Share January March 2009 Launched: TV2 2% Ring TV 0% Ownership: 80% 80% Licence expiry: 2010 Technical reach: 80% 59% Diemas channels 4% Others 18% Channel 1 10% Distribution method: Free-to-Air, Satellite & Cable Satellite & Cable Hours broadcast daily Locally produced content: (% of broadcast time) Prime-time locally produced content: (% of broadcast time) Local audience ratings agency 46% 8% 30% 37% TNS Bulgaria Nova TV 25% btv 41% Source: TNS Bulgaria Prime Time Audience Target Group Source: CME 1 TV 2 and Ring TV were acquired in August

48 Bulgaria Prime Time Audience Share Trends Urban Source: TNS Bulgaria Broadcast Operations Three months ended 31 March Full year ended 31 December Growth % Growth % Net revenues (BGN m) EBITDA (BGN m) (10.0) - - (14.6) - - Net revenues (USD m) EBITDA (USD m) (6.7) - - (10.1) - - EBITDA Margin % - - (807%) - The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our form 10-K for the year ended December 31, 2008.

49 4949 Financial Review Historical Financials

50 Segment Results for the Quarter Q1 Segment Analysis Net Revenues and EBITDA (US$ Millions) US$ millions Net Revenues EBITDA (Broadcast & Nonbroadcast) Growth % Like for like growth Growth % Like for like growth 1 Czech Republic (34%) (17%) (43%) (28%) Romania (38%) (18%) (69%) (59%) Slovak Republic (22%) (17%) (59%) (56%) Slovenia (27%) (15%) (31%) (18%) Croatia (12%) 6% 0.0 (2.7) 98% 98% Sub-total (32%) (16%) (50%) (37%) Ukraine (79%) (79%) (12.3) (2.7) (356%) (356%) Bulgaria (6.7) Sub-total (37%) (24%) (74%) (55%) Corporate (4.2) (9.8) 57% 57% Total (37%) (24%) (76%) (55%) Total EBITDA Margin 4 11% 29% Represented By: Broadcast Operations Non-Broadcast Operations (1.9) (1.5) Corporate - - (4.2) (9.8) 1 The percentage movements displayed for Sub-totals are represented on a Like for Like basis, which reflects the impact of applying the current period average exchange rates to the prior period revenues and costs. It eliminates the impact of acquisitions and disposals. 2 Slovak Republic has used the EUR as its functional currency since January 1, Prior to that, its functional currency was the SKK. Slovak Republic local currency growth is calculated using the Q results converted from SKK into EUR at the fixed conversion rate of , which is the rate at which the SKK was converted to EUR when Slovakia adopted the Euro on January 1, Ukraine has used the UAH as its functional currency since January 1, Prior to that, its functional currency was the USD. Ukraine local currency growth is calculated using the Q results converted from USD to UAH at the average rate for Q Ratio of EBITDA to Net Revenues. The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31,

51 51 Full Year Segment Results Full year Segment Analysis Net Revenues and EBITDA (US$ Millions) US$ millions Net Revenues EBITDA (Broadcast & Non-broadcast) Growth Local Currency Growth Local Currency % Growth % Growth 1 Czech Republic % 15% % 14% Romania % 32% % 24% Slovak Republic % 5% % 8% Slovenia % 9% % 7% Croatia % 36% (5.4) (13.9) 61% 65% Sub-total % % Ukraine (STUDIO 1+1) (23%) (23%) (33.0) (222%) Ukraine (KINO, CITI 3 ) % 80% (1.8) (3.5) 48% 48% Bulgaria (10.2) Sub-total 1, % % Corporate (48.8) (54.6) 10% - Total 1, % % EBITDA Margin 4 29% 32% Represented By: Broadcast Operations 1, Non-Broadcast Operations (8.7) (3.9) Corporate - - (48.8) (54.6) 1 Local currency refers to the local functional currency for accounting purposes. 2 Romania has used the RON as its functional currency since January 1, Prior to that, its functional currency was the USD. Romania local currency growth is calculated by converting USD into RON at the average rate for the year ended December, 2007 and comparing it to 2008 RON. 3 We sold our interest in the CITI channel in February 2009 and therefore the results of the CITI channel have been treated as discontinued operations in the financial statements for all periods presented. 4 Ratio of EBITDA to Net Revenues. The percentage growth and EBITDA margin figures have been derived from data included in our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008.

52 Q Key financial measures P&L (US$ m) Q Q Operating income before impairment charge (2.7) 45.5 Non-cash impairment charge (81.8) - Operating (loss)/income (84.5) 45.5 Cash Flow (US$ m) Q Q Cash flow from operations Capital expenditure (7.8) (23.7) Free cash flow Net Debt (US$ m) At Mar 31 Dec Gross Debt 1 (1,314.4) (1,109.8) Cash Net Debt (1,007.8) (1,002.4) Liquidity (US$ m) At Mar 31 At Dec Cash Undrawn facilities Liquidity Gross Debt includes Convertible Notes at the repayment value of US$ 475m rather than at the balance sheet value of US$ 383m 52

53 Summary Financial Results Summary Consolidated Income Statement (US$ Millions) US$ millions Quarter ended 31 March Full year ended 31 December Net revenues , Operating costs Cost of programming Depreciation and amortisation Selling, general and administrative costs Impairment charge Operating (loss) / income (84.5) 45.5 (127.8) Net interest expense (20.7) (13.0) (58.5) (49.3) Foreign currency gain / (loss), Change in FV of derivatives 45.4 (27.7) (31.5) (38.1) Non-operating income Income tax credit / (expense) (34.5) (20.8) Minority interest in income of consolidated subsidiaries - - (2.1) (17.2) Net (loss) income from continuing operations (46.7) 15.7 (251.8) 93.0 Discontinued operations (0.2) (0.8) (3.7) (4.4) Net income attributable to noncontrolling interests 2.5 (0.5) - - Net (loss) / income attributable to CME Ltd. (44.4) 14.4 (255.5) 88.6 Please refer to our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008 for the full financial statements and related notes and disclosures. 53

54 Summary Financial Results Summary Consolidated Balance Sheet (US$ Millions) US$ millions As at 31 March 2009 As at 31 December 2008 Current assets Non-Current assets 1, ,911.9 Total assets 2, ,406.6 Current liabilities Non-current liabilities 1, ,079.5 Total liabilities 1, ,308.2 Shareholders' equity ,095.3 Noncontrolling interests Total liabilities & shareholders' equity 2, ,406.6 Cash & cash equivalents Senior Debt, credit facilities and capital lease obligations (1,314.3) (1,109.8) Net Debt (1,007.7) (1,002.4) Cash and cash equivalents Undrawn committed facilities Liquidity Please refer to our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008 for the full financial statements and related notes and disclosures. 54

55 Summary Financial Results Summary Cash Flow (US$ Millions) US$ millions Quarter ended 31 March Full year ended 31 December Net cash generated from continuing operating activities Net cash used in continuing investing activities (29.9) (23.6) (588.8) (235.9) Net cash received from continuing financing activities Net cash used in discontinued operations operating activities (1.3) (2.3) (5.4) (7.5) Impact of exchange rate fluctuations (17.0) (5.2) (21.4) (1.9) Net increase in cash and cash equivalents (35.4) (3.1) Operating cash flow less capex Please refer to our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008 for the full financial statements and related notes and disclosures. 55

56 Equity structure as at March 31, 2009 Class B Class A Quoted on NASDAQ & Prague Stock Exchange CME Stock included in MSCI & Russell 1000 Indices Ronald Lauder and Lauder Family Apax Partners 50.3% 49.7% 36,024,273* 6,312,839 85% value 36% voting 15% value 64% voting Voted by Ronald Lauder under voting agreement Total shares issued and outstanding 42,337,112 Options to purchase shares 1,425,917 Total shares issued plus options to purchase 43,763,029 * Includes 4,775,227 unregistered shares held by PPF and Igor Kolomoisky 56

57 Pro forma equity structure following Time Warner Class B Class A Quoted on NASDAQ & Prague Stock Exchange Ronald Lauder and Lauder Family Apax Partners 36,024,273* Time Warner 14,500,000 Total 50.3% 49.7% 50,524,273 6,312,839 Time Warner 4,500,000 58% value 23% voting 24% value 9% voting 82% value 32% voting 11% value 40% voting 7% value 28% voting Voted by Ronald Lauder under voting agreement Voted by Ronald Lauder under voting agreement Voted by Ronald Lauder under voting agreement Total 10,812,839 18% value 68% voting Total shares issued and outstanding Options to purchase shares Total shares issued plus options to purchase 61,337,112 1,425,917 62,763,029 * Includes 4,775,227 unregistered shares held by PPF and Igor Kolomoisky 57

58 Indebtedness as at March 31, 2009 USD millions LC 1 millions Source Drawn Undrawn Total facility Total facility LC Maturity Corporate: EBRD revolving loan agreement EUR Senior notes - fixed EUR 2012 Senior Convertible Notes USD 2013 Senior notes - floating EUR 2014 Station level: Slovenia EUR Czech Republic ,750.0 CZK 2010 Cash pool USD N/A Unused overdraft facilities Total 1, ,338.4 Lease Obligations 4.6 Currency Agreements 3.8 Total Debt (Consolidated) 2 1,314.4 Less: Unrestricted Cash (306.6) Net Debt 1,007.8 Weighted average interest rate 5.65% 1 LC: local currency 2 Total Debt includes Convertible Notes at the repayment value of US$ 475m rather than at the balance sheet value of US$ 383m 58

59 Pro forma indebtedness following Time Warner investment USD millions LC 1 millions Source Drawn Undrawn Total facility Total facility LC Maturity Corporate: EBRD revolving loan agreement EUR Senior notes - fixed EUR 2012 Senior Convertible Notes USD 2013 Senior notes - floating EUR 2014 Station level: Slovenia EUR Czech Republic ,750.0 CZK 2010 Cash pool USD N/A Unused overdraft facilities Total 1, ,338.4 Lease Obligations 4.6 Currency Agreements 3.8 Total Debt (Consolidated) 2,3 1,314.4 Less: Unrestricted Cash 3,4 (546.6) Net Debt Weighted average interest rate 5.65% 1 LC: local currency 2 Total Debt includes Convertible Notes at the repayment value of US$ 475m rather than at the balance sheet value of US$ 383m 3 Assumes no changes to cash or debt. 4 Assumes net proceeds of approximately US$ 240 m. 59

60 US GAAP Reconciliation Net Revenues Reconciliation (US$ Millions) US$ Millions Three months ended 31 March Full year ended 31 December All Stations: Net Revenues - Broadcast Operations , Net Revenues - Non-Broadcast Operations Net Revenues - Corporate Net Revenues , Reconciliation to Consolidated Statement of Operations: Consolidated Net Revenues , Net Revenues , Please refer to our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008 for the full financial statements and related notes and disclosures. 60

61 US GAAP Reconciliation EBITDA Reconciliation (US$ Millions) US$ Millions Three months ended 31 March Full year ended 31 December All Stations: EBITDA - Broadcast Operations EBITDA - Non-Broadcast Operations (1.9) (1.5) (8.7) (3.9) EBITDA - Corporate (4.2) (9.8) (48.8) (54.6) EBITDA Reconciliation to Consolidated Statement of Operations: Operating (loss) / income (84.5) 45.5 (127.8) Depreciation/amortization/impairment EBITDA Please refer to our Form 10-Q for the period ended March 31, 2009 and our Form 10-K for the year ended December 31, 2008 for the full financial statements and related notes and disclosures. 61

62 6262 Appendix

63 CME Management Team Adrian Sarbu President and Chief Operating Officer Over 25 years film and media experience Founded MediaPro Group, the largest media group in Romania CME s founding partner in Romania Wallace Macmillan Chief Financial Officer Over 20 years of media industry experience Formerly CFO EMI's Virgin Sector / Latin American / South East Asian regions and VP Finance EMI Recorded Music Division Regional Director Marijan Jurenec 15 years TV experience Founder partner of Tele59/POP TV Directs Adriatic Region for CME Mark Wyllie Vice President Corporate Finance Extensive experience in finance and accounting Formerly Finance Director for Asia and Eastern Europe for United Biscuits General Counsel Daniel Penn Extensive media and emerging market experience Worked with Mayer, Brown & Platt, in New York, Tashkent, Uzbekistan and London Romana Tomasova Vice President Corporate Communications Over 10 years of experience in marketing and communications Formerly managing communications and investor relations in PPF, Contactel and Czech Telecom MBA from University of Chicago 63

64 CME Board Non Executive Chairman Ronald S Lauder International businessman and President of the Jewish National Fund. Dedicated to long term, free market investment in Eastern Europe Herbert A Granath * Vice Chairman, Chairman of Nominating Committee and member of Compensation Committee and Related Party Transactions Committee Chairman Emeritus, ESPN, and Senior Content Advisor, Callahan Associates International Serving on the board of Veronis, Suhler & Associates, Fund III Charles R Frank * Director, Chairman of Related Party Transactions Committee and member of Audit Committee and Compensation Committee Non-executive member of the board of Mittal Steel Galati Former Vice President of the European Bank for Reconstruction and Development Herbert Kloiber * Director, and member of Nominating Committee and Related Party Transactions Committee Chairman and majority shareholder of Tele München Group Serving on the board of the Bavarian Film Funding Organization, Chairman of the Board of CineMedia Film AG, CinemaxX AG and ATV+ Alfred W Langer * Director, Chairman of Audit Committee and member of Nominating Committee and Related Party Transactions Committee Former CFO of Solvadis, a subsidiary of the German group MG Technologies. Independent consultant in financial and organizational areas Bruce Maggin * Director, Chairman of Compensation Committee and member of Nominating Committee Currently a Principal of the H.A.M Media group, an international investment and advisory firm specializing in the entertainment and communications industriesarial 64 Director Igor Kolomoisky International businessman with diversified interests both in CIS and worldwide Controlling shareholder of PrivatBank, one of the largest Ukrainian banks Major shareholder and member of the Supervisory Board of Ukrnafta, the largest Ukrainian oil and natural gas company Ann Mather * Director, Member of Audit Committee and Related Party Transactions Committee Formerly Executive Vice President, Chief Financial Officer, Company Secretary for Pixar Former Vice President and Chief Financial Officer at Village Roadshow pictures Serving on the Board of Google as Chairwoman of Audit Committee Director Christian Stahl Partner at Apax Partners from 1999 leading media group Formerly with Bain and Co. MBA from INSEAD Director Partner at Apollo Management, L.P. Former member of the Corporate Finance Department at Morgan Stanley Dean Witter & Co. Eric Zinterhofer Director Frank Ehmer Currently with Apax Partners, London Previously with Highbridge Hedge fund MBA from Harvard Director Duco Sickinghe * Chief Executive Officer and Managing Director of Telenet. 20 years experience in the technology and media industry Member of the Board of Directors of Zenitel NV Director Olaf Olafsson Executive Vice President of Time Warner Founder and former President and Chief Executive Officer of Sony Entertainment Interactive, Inc. * Directors determined as independent by the CME Board

65 Contacts Prague Office Kříženeckého nám. 1078/ Prague 5 Barrandov Czech Republic Romana Tomasova Romana.Tomasova@cme-net.com Vice President Corporate Communications Telephone