2011 Capital Markets Day Introduction and Investment Highlights Anton Kudryashov Chief Executive Officer Chief Executive Officer
2011 Capital Markets Day
Introduction and Investment Highlights
Anton KudryashovChief Executive OfficerChief Executive Officer
Today’s SpeakersToday’s Speakers
Ruslan TagievPeter Aven Mikhail Nazarov Sergey Veselov Ruslan TagievCEO of TNS Russia
Peter AvenPresident of Alfa-Bank
Mikhail NazarovDeputy General Manager of Analytical Center Video International
Sergey VeselovResearch Director of Analytical Center Video International
Slava Murugov Chief Content Officer
Boris PodolskyChief Financial
Yulia Moskvitina Chief Commercial
Anton KudryashovChief Executive
Anna-Maria TrenevaHead of DigitalChief Content Officer Chief Financial
Officer Chief Commercial Officer
Chief Executive Officer
Head of Digital Products
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Introduction and Investment Highlights Anton Kudryashov Chief Executive Officer
Today’s AgendaToday’s Agenda
Introduction and Investment Highlights Anton Kudryashov Chief Executive Officer Russian Growth: Structural Constraints Hinder Recovery
Peter Aven President of Alfa-Bank
Russian Advertising Media Market Overview Mikhail Nazarov Deputy General Manager
Sergey Veselov
p y gof Analytical Center Video International
Research Director of Analytical Center Video International
Key Growth Drivers Anton Kudryashov Chief Executive Officery Chief Executive Officer Session Wrap-up Anton Kudryashov Chief Executive Officer Coffee break (11:00am – 11:30am)
Channel Positioning and Content Strategy Slava Murugov Chief Content Officer & Head of CTC Channel
TV Audience Measurement in Russia Ruslan Tagiev CEO of TNS RussiaNew Advertising Sales Structure Yulia Moskvitina Chief Commercial OfficerSession Wrap up Anton Kudryashov Chi f E ti OffiSession Wrap-up Anton Kudryashov Chief Executive Officer Lunch (1:15pm - 2:45pm)
New Media Initiatives Anna-Maria Treneva Head of Digital ProductsDelivering Shareholder Value Boris Podolsky Chief Financial OfficerDelivering Shareholder Value Boris Podolsky Chief Financial OfficerSession Wrap-up Anton Kudryashov Chief Executive Officer Summary & Concluding Remarks Anton Kudryashov Chief Executive OfficerDinner at the Billiard Room at the Sanderson Hotel (reception starts at 7:00pm)Dinner at the Billiard Room at the Sanderson Hotel (reception starts at 7:00pm)
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From Private TV Network to Vertically Integrated Public Media Company From Private TV Network to Vertically Integrated Public Media Company
CTC Media was fo nded as Stor First
Launch of CTC Network Launch of Domashny
Net ork
Acquisition of the DTV group
Acquisition of Channel 31 in
Launch of CTC-international in
Israel
Establishment offounded as StoryFirst Communications
First Russian TV series commissioned by CTC started airing
Network Channel 31 in Kazakhstan
CTC Media enters Moldova free-to-air
TV market
Establishment of CTC Media’s
internal advertising sales house
‘Everest Sales’
f
Alfa Group became a shareholder of CTC
Media
Acquisition of Costafilm and Soho Media production
companies
Launch of ‘Videomore’ online
social television network
1989 1994 1996 1999 2002 2003 2004 2005 2006 2008 2009 2010 2011
TV broadcasting in Russia began
Modern Times Group became a
Changed name to CTC Media
Initial Public Offering
on NASDAQLaunch of CTC-
international in USALaunch of CTC-international in g Group became a
shareholder of CTC Media
on NASDAQ international in USAGermany
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A Leading Independent Media Company in Russia and the CISA Leading Independent Media Company in Russia and the CIS
FREE-TO-AIR (RUSSIA)
CTC – target audience All 6-54
Domashny – target audience Women 25-60
FREE TO AIRChannel 31KAZAKHSTAN
DTV – target audience All 25-54
FREE-TO-AIR (CIS)
CTC TV Dixi channelMOLDOVA
CONTENT PRODUCTION
SOHO MEDIA
COSTAFILM In-house and third party content production
CTC-INTERNATIONAL
(PAY-TV)International version of CTC channel
NEW MEDIA Social TV Network
AD SALES Internal advertising sales house Everestg
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Benefiting from the Network Model in RussiaBenefiting from the Network Model in Russia
Time Shifted+4h,+7h
Time Shifted+0h,+2h
Two satellites covering all 9 time zones
Network CTC Network: about 100 mln viewers; 50Signal Uplink CTC Network: about 100 mln viewers; 50 owned and operated stations and unmanned repeaters
Domashny Network: about 68 mln viewers; 38 owned and operated station sand unmanned
DTV Network: about 60 mln viewers; 32 owned and operated stations and unmanned
Network75% Ad Time
Network contributes programming and branding
owned and operated station sand unmanned repeaters repeaters
Affiliate25% Ad Time
About 2,000 independent affiliates contribute TV broadcasting and promotion in their territory
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Strong Track Record of Market Outperformance and High ProfitabilityStrong Track Record of Market Outperformance and High Profitability
Billion Rub
16.0 15.918.3
161820
Billion Rub
10.112.1
10121416
4.56.7
2 94.7 5.6
7.0 6.6 6.7
468
10
2.0 2.9
024
2004 2005 2006 2007 2008 2009 2010
Revenues OIBDA**Note: (*) CAGR 2004-2010, all dynamics are provided in Rub terms
(**) E l di i it(**) Excluding non-recurring items
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Key Investment HighlightsKey Investment Highlights
The largest independent and the only public broadcaster in Russia
Unique play on large and fast growing Russian advertising market
Targeting audiences which are most attractive to advertisers
Control of the whole value chain due to vertical integration into content production, distribution and advertising sales
Superior profitability and strong cash flow generation
Proven management track record and supportive shareholders
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