Q1 2018 FINANCIAL RESULTS Plan to split MTG into two listed - PowerPoint PPT Presentation

Q1 2018 FINANCIAL RESULTS

Plan to split MTG into two listed companies Nordic Entertainment Group New MTG  A pure play in digital entertainment  Nordics leading entertainment provider  Comprising esports (ESL & DreamHack), online  Comprising Nordic Entertainment, MTG Studios and gaming (InnoGames & Kongregate), Zoomin.TV, and Splay Networks other investments  CEO: Anders Jensen  CEO: Jørgen Madsen Lindemann  CFO: TBA  CFO: Maria Redin  Company name: Nordic Entertainment Group  Company name: MTG  Shares will be distributed to MTG shareholders and  Shares will remain listed on Nasdaq Stockholm listed on Nasdaq Stockholm during H2 2018  HQ at Skeppsbron, Sweden  HQ at Ringvägen, Sweden 18 2

Q1 2018 IN SUMMARY 9% organic sales growth & 73% profit growth • Q1 marks the 7 th consecutive quarter with at • least 5% organic growth Digital sales up 88% and accounted for 35% of • Group sales MTG preparing to split into two listed • companies during H2 2018, through distribution of shares in Nordic Entertainment Group 3

SALES & EBIT BY SEGMENT EBIT before IAC (SEKm) Sales (SEKm) 5 000 300 4 500 200 237 4 674 4 000 100 137 3 704 3 500 0 Q1’17 NE IE Studios MTGx Central Q1’18 Q1’17 NE IE Studios MTGx Central Q1’18 ops. & ops. & Elim. Elim. Sales and EBIT refer to continuing operations 4

NORDIC ENTERTAINMENT Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 6% 3 500 400 • Solid growth in both sub-segments despite difficult comps and winter- 3 000 Olympics on rival channels 300 2 500 • FTV & Radio boosted by Viafree, Swedish Radio and the European 2 000 Handball Championship 200 • PTV growth driven by strong 3 rd partly 1 500 and Viaplay subscriber intake 1 000 100 All-time high Q1 profits – up 4% 500 • Continue to deliver on profitable growth ambition 0 0 • 6 th consecutive quarter with profit Q1’17 Q1’18 Q1’17 Q1’18 growth 5

MTG STUDIOS Key highlights Sales (SEKm) EBIT (SEKm) Organic sales down 2% 400 0 • Sales down due to lower events sales and timing differences in the production schedule for scripted drama 300 • However the underlying demand for scripted drama remains strong and the pipeline looks promising 200 -10 • Opportunities to accelerate growth in digital first production by a closer cooperation with Splay Networks 100 Slightly lower operating loss • Q1 is a seasonally weak sales quarter 0 -20 and typically loss making Q1’17 Q1’18 Q1’17 Q1’18 • Losses down slightly despite start-up costs for Atrium-TV 6

INTERNATIONAL ENTERTAINMENT Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 14% and EBIT up 90% 400 50 • Double-digit sales growth in Nova Group (Bulgaria) & Trace 40 • Improved profitability in both 300 businesses 30 Agreements to sell remaining 200 businesses 20 • Waiting for regulatory approvals for both Trace and Nova 100 10 • Both expected to close in Q2 2018 0 0 Q1’17 Q1’18 Q1’17 Q1’18 7

MTGx Key highlights Sales (SEKm) EBIT (SEKm) Organic sales up 27% 1 000 0 • Fuelled by over 70% growth in ESL’s own and operated events 800 -20 • Reported sales up 226% following consolidation of InnoGames and Kongregate 600 -40 Turned EBITDA loss into a profit 400 -60 • EBITDA of SEK 45m (-71) • Supported by InnoGames 200 -80 • EBIT loss of SEK 8m (-84) • New organisational structure announced in ESL in April 0 -100 Q1’17 Q1’18 Q1’17 Q1’18 8

SALES & EBIT BY TYPE Sales (SEKm) EBIT before IAC (SEKm) 5 000 300 4 500 200 4 000 4 674 237 100 3 500 137 3 704 3 000 0 Q1’17 Organic FX Acquisitions Divestments Q1’18 Q1’17 Organic Acquisitions Divestments Q1’18 For continuing operations. Organic EBIT includes FX translation & transaction effects. Acquisitions includes M&A costs. 9

LEVERAGE Net debt (SEKm) Net debt to 12m trailing EBITDA before IAC 3 500 3,0 3 000 2,5 2 500 2,0 2 000 1,5 1 500 1,0 1 000 0,5 500 0 0,0 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 10

SUMMARY 9% organic sales growth & 73% profit growth • Q1 marks the 7 th consecutive quarter with at • least 5% organic growth Digital sales up 88% and accounted for 35% of • Group sales MTG preparing to split into two listed • companies during H2 2018, through distribution of shares in Nordic Entertainment Group 11

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