4. martin lewerth, niclas ekdahl anytime, anywhere

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Martin

Lewerth

EVP of Pay-TV

and Technology

Niclas

Ekdahl

CEO

of Viaplay

Born 1973

Joined MTG in 2001

What I love: Being prepared & planning

properly

What I hate: Football

Favourite quote: “It always seems

impossible until its done.”

Born 1970

Joined MTG in 2002

What I love: Football

What I hate: Losing

Favourite quote: “Stand facing the sun and

the shadows fall behind you.”

2

Best in class operating

performance

3

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2006 2007 2008 2009 2010 2011

Revenue EBIT EBIT margin

(SEK million)

From physical… to digital… to streaming in the ‘cloud’

The entertainment landscape is

changing fast & fundamentally

4

Source: 1) Screendigest

Music

Print

Video

Amazon sold more Kindle books

than paperback books in 2011

Digital music sales accounted

for >50% of total worldwide

music sales in 2011

1.4

3.4

2.6 2.4

2011 2012

Movies online Physical video

Movie viewership in the U.S1

(Number of views /

transactions (bn))

Video is driving IP traffic growth

5

Source: Cisco VNI, 2011

Global IP traffic growth (PB / month)

0

10 000

20 000

30 000

40 000

50 000

60 000

2010 2011 2012 2013 2014 2015

Internet video

File sharing

Web, email, and data

Video calling

Online gaming

Voice over IP (VoIP)

OtherV

ide

o

And the media landscape is

evolving rapidly

6

Broadcasters

Creating order out of chaos

7

Advertising

(free) models

Pay

models

Open

Internet

Walled

gardens

AVOD/Free VOD (advertising)

SVOD (subscription) Closed networks

Proprietary

ecosystems

Existing structures New structures

TVOD (transaction)

91%

83% 74% 73%

Sweden UK US EU-27

15%

7%

1% 1%

Sweden EU-27 UK US

Scandinavia is the cradle of

broadband

Internet penetration

(% of households)1

Internet access speed >30 Mbps 3

(% of population)

Sources:1) Eurostat, OECD (for US, as of June 2011) 2) OECD, June 2011, European Commission (for EU-27); 3) Eurostat, FCC (for US, as of Dec 2010, Tier: <10Mbps,

10-25Mbps, >25Mbps); 4) netindex.com, test data between 29 Apr - 28 May 2012, Solon

24

16 1513

Sweden UK EU-27 US

Average actual download

speeds (Mbps)4

94%

66%

44%

35%

Sweden US UK EU-27

Mobile broadband penetration

(% of population)2

And our strategy is evolving

accordingly

9

Time

Su

bs

cri

be

rs

Pay-TV Life Cycle

Satellite

Virtual

operator Over The Top

Channel

wholesale

Sources: Screendigest, Solon

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011

But traditional platforms still

dominate

10

Nordic platform market shares (millions of Households)

Satellite

Digital Terrestrial Analogue terrestrial

IPTV

Cable

3 000

3 500

4 000

4 500

5 000

2006 2007 2008 2009 2010 2011

Satellite is about value growth

not volume growth

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Nordic satellite premium

ARPU (SEK)

Nordic satellite premium

subscribers (000’s)

0

200

400

600

800

2006 2007 2008 2009 2010 2011

CAGR 6.6 %

CAGR -2.1 %

7%

11%

4%

5%

6%

0%

2%

4%

6%

8%

10%

12%

2007 2008 2009 2010 2011

With consistent price increases

& room for more

12 Source: Viasat Broadcasting research

Sweden price benchmark (SEK) Annual satellite subscription price

increases (Nordic)

200

300

400

500

600

700

800

900

1 000

Viasat Canal Digital

Boxer Telia

SKY UK DIRECTV

Ext. basic Mid tier Mid+movie Total Mid+sport

And rising penetration of add-on

services

13

Sources: Viasat Broadcasting research

Penetration of add-on services, Nordic satellite platform

0%

10%

20%

30%

40%

50%

60%

2007 2008 2009 2010 2011 2012

HD

Multi-room

PVR

Viasat box Viaplay

Multi-screen Viaplay

3D PVRs HD

And we’ve now become a ‘Virtual

Operator’ in 3rd

party networks

14

Sources: Viasat Broadcasting research

0

200

400

600

800

1 000

1 200

2006 2007 2008 2009 2010 2011

DTH satellite 3rd party networks

Viasat premium

subscribers (Nordic)

Scandinavian

satellite

universe

Scandinavian

satellite & Virtual

Operator agreements (IPTV, cable)

~1.6m

households

~4.2m

households

2008 2009 2010 2010 1991

So…how does this look in

profitability terms?

15

YR1 YR2 YR3 YR4

Gro

ss

ma

rgin

DTH Virtual Operator

Indicative schematic

Martin

Lewerth

EVP of Pay-TV

and Technology

Niclas

Ekdahl

CEO

of Viaplay

Born 1973

Joined MTG in 2001

What I love: Being prepared & planning properly

What I hate: Football

Favourite quote: “It always seems impossible

until its done.”

Born 1970

Joined MTG in 2002

What I love: Football

What I hate: Losing

Favourite quote: ”Stand facing the sun and the

shadows fall behind you.”

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Satellite

1.6 million households

Satellite + Virtual

operator

4.2 million households

Over The Top

9 million households

Viaplay opens up a whole new

universe

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As we make TV content

available anytime & anywhere

18 TV set-top boxes

Smart TV-sets

Tablets

OTT STB

Game consoles

PC/Mac

Smart phones

With a compelling content

offering

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At competitive price points

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49 SEK

99 SEK

199 SEK

OFFERED FOR FREE OR DISCOUNTED TO VIASAT SATELLITE SUBSCRIBERS

That has become the preferred

choice of Swedish consumers

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With a balanced geographical &

package split

Viaplay by geography Viaplay by package type

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Available on more and more

smart TVs

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~40% of TV’s sold are web connected

> 1 million Smart TVs to be sold in 2012

Viaplay soon available on 70% of

Smart TVs

10% of Viaplay subs already use

Smart TVs

* * *

*

* Available via terrestrial signal

*

Viaplay streaming box

Viaplay to your TV

25 linear channels

DTT connection

Full-blown media center

And now we take it a step further

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And with limited cannibalization

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• 24% of Viaplay subscribers have not had Pay-TV subscriptions

before

• 10% have not had Pay-TV subscriptions for the last 6 months

- of which, 50% previously had a Viasat subscription

• So…only 5% of new Viaplay subscribers are potentially

cannibalizing Viasat

• …and 95% do not cannibalize our existing satellite business

So… How does this look in

profitability terms?

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Indicative schematic

What next?

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• Make available on increasing number of devices

• Maintain long term premium content leadership

• Roll out Viaplay box

• Enhance content discovery and recommendation

• Enable offline mode

• Expand into new territories

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