2015 Q3 Earnings call presentations2.q4cdn.com/.../Q3-2015-Earnings-Call-Presentation.pdfEARNINGS...

Q3 2015EARNINGS CALL PRESENTATION

Cautionary Language

This presentation contains forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions. Statementsthat use the terms “believe”, “anticipate”, “trend”, “expect”, “plan”, “estimate”, “forecast”, “intend” and similar expressions of a future or forward-looking natureidentify 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 1995.

Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond ourcontrol and some of which might not even be anticipated. Forward-looking statements reflect our current views with respect to future events and because ourbusiness is subject to such risks and uncertainties, actual results, our strategic plan, our financial position, results of operations and cash flows could differmaterially from those described in or contemplated by the forward-looking statements contained in this report.

Important factors that contribute to such risks include, but are not limited to, those factors set forth under "Risk Factors” as well as the following: the success ofour efforts to increase our revenues and recapture advertising market share in the Czech Republic; levels of television advertising spending and the rate ofdevelopment of the advertising markets in the countries in which we operate; the effect of global economic uncertainty and Eurozone instability in our marketsand the extent, timing and duration of any recovery; the extent to which our liquidity constraints and debt service obligations restrict our business; our ability torefinance our existing indebtedness; our success in continuing our initiatives to diversify and enhance our revenue streams; our ability to make cost-effectiveinvestments in television broadcast operations, including investments in programming; our ability to develop and acquire necessary programming and attractaudiences; changes in the political and regulatory environments where we operate and application of relevant laws and regulations; our exposure to additionaltax liabilities; and the timely renewal of broadcasting licenses and our ability to obtain additional frequencies and licenses.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that areincluded in our filings. For a more detailed description of these uncertainties and other features, please see the “Risk Factors” section in our most recent QuarterlyReport 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 madeand we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments orotherwise.

Non-GAAP Financial MeasuresCME reports its results in accordance with generally accepted accounting principles in the United States (“GAAP”). However, management believes that certainnon-GAAP performance measures used in managing the business may provide meaningful information about underlying trends in our business. Non-GAAPfinancial measures should be viewed in addition to, and not as an alternative for, CME’s reported results prepared in accordance with GAAP. Please see theattached appendix for a reconciliation to the most directly comparable GAAP financial measures. OIBDA, which includes amortization and impairment of programrights, is determined as operating income before depreciation, amortization of intangible assets and impairments of assets and certain unusual or infrequentitems that are not considered by our chief operating decision makers when evaluating our performance.

2

Management Attending the Call

Michael Del Nin – Co-Chief Executive Officer

Christoph Mainusch – Co-Chief Executive Officer

David Sturgeon – Chief Financial Officer

Daniel Penn – General Counsel

Mark Kobal – Head of Investor Relations

3

Net Revenues Trend by Quarter

4

US$ m

200

150

100

50

0 Q1 2013

Q1 2014

Q1 2015

Q2 2013

Q2 2014

Q2 2015

Q3 2013

Q3 2014

Q3 2015

124

141

126

167

193

167

123131

Q1 Q2 Q3

Actual Exchange Rates

US$ m

200

150

100

50

0 Q1 2013

Q1 2014

Q1 2015

Q2 2013

Q2 2014

Q2 2015

Q3 2013

Q3 2014

Q3 2015

103116

126139

155167

102112

+12%

+9%

+12%

+8%

+10%+5%

Q1 Q2 Q3

Constant Exchange Rates (Lfl1)

¹ Like-for-Like currency variance reflects the impact of applying the current period average exchange rates to the prior period revenues.

117117

2013 2014 2015

40%

30%

20%

10%

0%

-10%

-20%

-30%

-40%Q1 Q2 Q3 Q4

(17)%

4%

(27)%

(1)%

(2)%

21%

2%

25%

9%

28%

7%

OIBDA Margin Trend by Quarter

@ actual rates

FY

(8)%

14%

5

130

80

30

-20

-70

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

12

(48)

(31)

3

39

95

110116

122

$m @ actual rates

Last Twelve Months (LTM) OIBDA Trend by Quarter

6

Net Revenues

150

100

50

0Q3 2014 FX Q3 2014@2015 rates Q3 2015

131.1

(19.5)

111.6 117.3

Consolidated Revenues and OIBDA

US$ m US$ m

OIBDA

30

15

0Q3 2014 FX Q3 2014@2015 rates Q3 2015

2.9

(0.1)

2.8

8.4

7

Q3 2015 Audience Performance Overview

Variance in percentage points1 Source: Local TV data provider, all shares in main channel sales target group.

2014 2015

Q3 All Day Audience Share

50%40%30%20%10%

0%

Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia

34.1% 25.7%36.8%

23.3% 31.8% 34.6%36.4%26.2% 34.3%

22.6% 30.3% 34.6%

1

2014 2015

Q3 Prime Time Audience Share

50%40%30%20%10%

0%


38.2% 32.1% 40.8%28.1% 34.4% 41.5%40.7% 32.8% 38.1%

28.2% 32.1%42.3%

1

+0.0

+0.7-2.7

+0.1-2.3

+0.8

+2.3+0.5

-2.5

-0.7-1.5

+2.5

8

Q3 2015 Revenues by Segment

US$ m

Net Revenues

Q3 2014 Q3 2015

Variance

Actual % Lfl %1

Bulgaria 17.7 14.7 (17.2)% (1.9)%

Croatia 10.9 9.9 (8.9)% 7.2 %

Czech Republic 38.1 35.6 (6.6)% 7.9 %

Romania 37.2 32.0 (13.9)% 2.3 %

Slovak Republic 17.7 17.2 (2.6)% 14.7 %

Slovenia 9.6 8.6 (10.3)% 5.8 %

Intersegment revenues (0.1) (0.7) NM 2 NM 2

Total net revenues 131.1 117.3 (10.5)% 5.2 %

¹ Like-for-Like currency variance reflects the impact of applying the current period average exchange rates to the prior period revenues.² Number is not meaningful.

The percentage growth figures have been derived from data included in our Form 10-Q for the period ended September 30, 2015.

9

Q3 2015 OIBDA by Segment

US$ mOIBDA

Q3 2014 Q3 2015Variance

Actual% Lfl%¹Bulgaria 2.2 2.2 2.8 % 22.1 %

Croatia (0.5) (0.9) (65.6)% (106.1)%

Czech Republic 9.7 9.5 (2.2)% 10.5 %

Romania 4.9 7.0 42.3 % 67.8 %

Slovak Republic (2.1) 0.4 NM 2 NM 2

Slovenia (3.4) (1.6) 54.8 % 45.2 %

Eliminations 0.0 (0.2) NM 2 NM 2

Operations sub-total 10.7 16.3 52.4 % 69.6 %

Central costs (7.8) (8.0) (2.5)% (16.7)%

Total 2.9 8.4 184.4 % 198.7 %¹ Like-for-Like currency variance reflects the impact of applying the current period average exchange rates to the prior period revenues and costs.² Number is not meaningful.


10

11

50

45

40

35

30

40.838.1

Czech Republic: Q3 2015 performance

US$ m Q32014

Q32015 % Act % Lfl¹

TV advertising revenues 34.4 32.0 (6.9)% 7.4 %

Carriage fee &subscription revenues 1.7 1.4 (16.8)% (2.8)%

Other revenues 2.0 2.1 8.3 % 26.2 %

Net revenues 38.1 35.6 (6.6)% 7.9 %

Total costs 28.4 26.1 (8.1)% 7.0 %

OIBDA 9.7 9.5 (2.2)% 10.5 %

¹ Like for-Like currency variance reflects the impact of applying the current period averageexchange rates to the prior period revenues and costs.

Source: ATO - Nielsen Admosphere; Mediaresearch (all audience share and leadershipdata is for the 15-54 target group). TV ad market share represents CME’s internalestimates.

-2.7

50

45

40

35

30

36.834.3

-2.5

Q3 20152014

Q3 2015

Prime Time Audience ShareAudience Share

All Day Audience Share

Q3 2015 Financials

Prima Group: 27%

CME Group: 60%

CT Group: 5%

Others: 8%

Market Share TV Ad Market Share (CME Group) Q3 2015 TV Ad Market Share

Market Share

Q3

60% 61% 60% 60% 60%

2014 2015 Q4 Q1 Q2 Q3

US$ m Q32014

Q32015 % Act % Lfl¹

TV advertising revenues 25.1 21.1 (15.9)% (0.2)%

Carriage fee &subscription revenues 11.8 10.0 (15.1)% 1.3 %

Other revenues 0.3 0.9 NM2 NM2

Net revenues 37.2 32.0 (13.9)% 2.3 %

Total costs 32.3 25.0 (22.4)% (7.7)%

OIBDA 4.9 7.0 42.3 % 67.8 %

40

35

30

25

20

15

28.1 28.2

12

Romania: Q3 2015 performance

Q3 2015 Financials

+0.140

35

30

25

20

15

23.3 22.6

-0.7

Intact Group: 24%

CME Group: 61%

Prima Group : 3%

Others: 6%

Q3 2014 Q3 2015



TV Ad Market Share (CME Group) Q3 2015 TV Ad Market Share Market Share

Kanal D: 6%

¹ Like for-Like currency variance reflects the impact of applying the current period averageexchange rates to the prior period revenues and costs.² Number is not meaningful.

Source: Kantar Media (all audience share and leadership data is for the 18-49 Urban targetgroup). TV ad market share represents CME’s internal estimates.

Q3

63% 63% 63% 63%61%

2014 2015 Q4 Q1 Q2 Q3

¹ Like for-Like currency variance reflects the impact of applying the current period averageexchange rates to the prior period revenues and costs.² Number is not meaningful.

Source: PMT / TNS SK (all audience share and leadership data is for the 12-54 targetgroup). TV ad market share represents CME’s internal estimates.

45

40

35

30

25

34.432.1

13

Slovak Republic: Q3 2015 performance

Q3 2015 Financials

US$ m Q32014

Q32015 % Act % Lfl¹

TV advertising revenues 16.6 16.0 (3.3)% 13.7%

Carriage fee &subscription revenues 0.2 0.3 47.5 % 74.9%

Other revenues 0.9 0.9 (1.7)% 17.5%

Net revenues 17.7 17.2 (2.6)% 14.7%

Total costs 19.8 16.8 (14.6)% 1.1%

OIBDA (2.1) 0.4 NM2 NM2

-2.3

45

40

35

30

25

31.830.3

-1.5

RTVS: 3%

CME Group: 61%

JOJ Group: 33%

Q3 2014 Q3 2015




Q3

70%

64%

69%

64%61%

Q4 Q1 Q2 Q3 2014 2015

Other: 3%


Source: GARB (all audience share and leadership data is for the 18-49 target group).TV ad market share represents CME’s internal estimates. 14

CME Group: 57%

50

45

40

35

30

25

38.240.7

Bulgaria: Q3 2015 performance

Q3 2015 Financials

US$ m Q32014

Q32015 % Act % Lfl¹

TV advertising revenues 11.5 9.3 (19.3)% (4.6)%


Other revenues 1.2 0.9 (18.6)% (3.8)%

Net revenues 17.7 14.7 (17.2)% (1.9)%

Total costs 15.5 12.5 (19.9)% (5.3)%

OIBDA 2.2 2.2 2.8 % 22.1 %

+2.550

45

40

35

30

25

34.136.4

+2.3

Others: 5%

BNT Group: 3%

MTG Group: 35%

Q3 2014 Q3 2015




Q3

56%

61%

56%58% 57%

Q4 Q1 Q2 Q3 2014 2015


Source: AGB Nielsen Media Research (all audience share and leadership data is for the18-54 target group). TV ad market share represents CME’s internal estimates. 15

40

35

30

25

20

32.1 32.8

Croatia: Q3 2015 performance

Q3 2015 Financials

US$ m Q32014

Q32015 % Act % Lfl¹


Carriage fee &subscription revenues 0.5 0.6 11.8 % 32.2 %

Other revenues 0.9 1.0 4.7 % 23.4 %

Net revenues 10.9 9.9 (8.9)% 7.2 %

Total costs 11.4 10.8 (5.3)% 11.6 %

OIBDA (0.5) (0.9) (65.6)% (106.1)%

+0.740

35

30

25

20

25.7 26.2

+0.5

HTV Group: 6%

CME Group: 58%

RTL Group: 36%

Q3 2014 Q3 2015

Audience Share


All Day Audience Share Prime Time Audience Share

Q3

57% 56% 56% 55%

58%

2014 2015 Q4 Q1 Q2 Q3

16

50

45

40

35

30

41.5 42.3

Slovenia: Q3 2015 performance

Q3 2015 Financials

US$ m Q32014

Q32015 % Act % Lfl¹



Other revenues 0.8 0.6 (22.0)% (7.8)%

Net revenues 9.6 8.6 (10.3)% 5.8 %

Total costs 13.0 10.2 (22.1)% (7.4)%

OIBDA (3.4) (1.6) 54.8 % 45.2 %

+0.850

45

40

35

30

34.6 34.6

+0.0

CME Group: 70%

Q3 2014 Q3 2015




Pink SI: 1%

State TV Group: 15%

Planet TV Group: 10%


Source: AGB Nielsen Media Research (all audience share and leadership data is for18-54 target group. TV ad market share represents CME’s internal estimates.

Other: 4%

Q3

73%

81%

76%78%

70%

Q4 Q1 Q2 Q3 2014 2015

Debt Maturity Profile and Free Cash Flow

17

1,000

800

600

400

200

02015 2016 2017 2018 2019

2017 Term Loan 2017 PIK NotesReplacement Facility for 2015Convertible Notes4 2017 Euro Term Loan

2614 281

4673

362

Pro Forma maturity as at September 30, 2015(US$ m)1

Liquidity available from RCF: US$ 115 million

1 Debt in currencies other than US$ are translated at FX rates as at September 30, 2015. ² Includes PIK interest to September 30, 2015.3 Excludes PIK interest from June 1, 2015.4 Assumes the 2019 Euro Term Loan is used to refinance the 2015 Convertible Notes at their maturity in November 2015.

Components of free cash flow (US$ m)

Nine months ended September 30, Variance2014 2015OIBDA 40 67 27Change in working capital 26 50 24Interest, taxes, and other (51) (23) 28Net investment in programming (29) (15) 14

Capex (20) (26) (6)

Total (34) 53 87

Business Outlook

Based on our view today, we expect:

• OIBDA growth toward the higher end of 45% - 55% at constant

rates.

• Free cash flow toward the higher end of US$ 45 - 55 million at

actual rates.

The outlook above does not include the impact of any unplanned restructuring and severance charges,

the impact from the potential sale of operating assets other than those already presented as discontinued

operations, or settlement of litigation that may occur from time-to-time due to management decisions and

changing business circumstances.

18

Appendix

EARNINGS CALL

19

YTD Audience Performance Overview

Variance in percentage points1 Source: Local TV data provider, all shares in main channel sales target group. YTD periods are the nine months ended September 30, 2015 and 2014.

2014 2015

YTD All Day Audience Share

50%40%30%20%10%

0%


33.9% 26.8%36.1%

25.1% 32.8% 34.6%38.7%26.9%

36.4%25.0% 30.8% 35.2%

1

2014 2015

YTD Prime Time Audience Share

50%40%30%20%10%

0%


38.4% 33.3% 40.7%30.5% 34.9% 43.0%43.3% 34.8% 40.7%

31.7% 33.1%44.1%

1

+0.6

+1.5 +0.0

+1.2 -1.8 +1.1

+4.8 +0.1

+0.3

-0.1-2.0

+4.9

20

YTD Revenues by Segment

US$ m

Net Revenues

Nine months ended September 30, Variance

2014 2015 Actual % Lfl %1

Bulgaria 60.9 50.9 (16.5)% 1.6%

Croatia 43.9 38.2 (13.0)% 6.2%

Czech Republic 136.4 122.7 (10.1)% 9.0%

Romania 123.5 109.6 (11.3)% 7.9%

Slovak Republic 60.0 55.0 (8.4)% 11.3%

Slovenia 41.4 35.1 (15.2)% 3.4%

Intersegment revenues (1.5) (1.2) NM 2 NM 2

Total net revenues 464.6 410.3 (11.7)% 7.3%

¹ Like-for-Like currency variance reflects the impact of applying the current period average exchange rates to the prior period revenues.² Number is not meaningful.


21

YTD OIBDA by Segment

US$ m

OIBDA

Nine months ended September 30, Variance

2014 2015 Actual% Lfl%¹Bulgaria 5.1 8.5 67.6% 105.4 %

Croatia 5.0 5.9 19.0% 49.4 %

Czech Republic 33.1 43.8 32.3% 60.4 %

Romania 21.0 25.7 22.6% 50.8 %

Slovak Republic (2.2) 3.8 NM 2 NM 2

Slovenia (0.2) (0.2) 0.4% 26.7 %

Eliminations 0.4 (0.3) NM 2 NM 2

Operations sub-total 62.1 87.3 40.6% 72.8 %

Central costs (21.7) (20.7) 4.8% (11.7)%

Total 40.4 66.6 65.1% 108.1 %¹ Like-for-Like currency variance reflects the impact of applying the current period average exchange rates to the prior period revenues and costs.² Number is not meaningful.


22

Summary Consolidated Statements of Operations

US$ m (except per share data)Three months ended

September, 30,Nine months ended

September 30,2014 2015 2014 2015

Net revenues 131.1 117.3 464.6 410.3Content costs 76.5 59.0 256.5 203.7Other operating costs 18.3 17.2 60.9 51.6Depreciation and amortization 11.0 9.7 33.5 30.5Selling, general and administrative costs 32.9 2.4 105.1 75.0Restructuring costs 0.3 0.2 8.6 1.3Operating (loss) / income (8.0) 28.9 0.0 48.1Interest expense (37.1) (44.0) (104.0) (125.9)Loss on extinguishment of debt — — (24.2) —Non-operating expense, net (5.7) (6.5) (4.6) (22.1)(Provision) / credit for income taxes (0.5) 0.1 (0.8) (3.5)Loss from continuing operations (51.3) (21.5) (133.7) (103.4)Loss from discontinued operations, net of tax (1.2) (0.3) (20.0) (0.9)Net loss (52.5) (21.8) (153.6) (104.3)Net loss attributable to noncontrolling interests 0.3 0.3 1.1 0.8Net loss attributable to CME Ltd. (52.1) (21.5) (152.5) (103.5)

Net loss attributable to CME Ltd. per share (0.38) (0.18) (1.12) (0.79)Please refer to our Form 10-Q for the period ended September 30, 2015 for the full financial statements and related notes and disclosures.

23

Summary Consolidated Balance Sheet

24

US$ m As at December 31, 2014 As at September 30, 2015

Current assets 345.0 321.5Assets held for sale 29.9 12.5Total current assets 374.9 334.0Non-current assets 1,244.5 1,142.9Total assets 1,619.4 1,476.9Current liabilities 439.9 423.0Liabilities held for sale 10.6 8.4

Non-current liabilities 667.7 706.4Total liabilities 1,118.2 1,137.8Series B Convertible Redeemable Preferred Stock 223.9 236.7CME Ltd. shareholders' equity 279.8 105.1Noncontrolling interests (2.6) (2.7)Total liabilities and equity 1,619.4 1,476.9

Cash & cash equivalents 34.3 61.8Gross debt 1 (1,066.0) (1,072.0)

Net debt (1,031.7) (1,010.2)¹ Gross debt is the full face value of all outstanding debt. Please refer to our Form 10-Q for the period ended September 30, 2015 for the full financial statements and related notes and disclosures.

Summary Cash Flow

US$ mNine months ended September 30,

2014 2015

Net cash (used in) / generated from continuing operating activities (14.4) 79.1

Net cash used in continuing investing activities (20.0) (26.2)

Net cash provided by / (used in) continuing financing activities 15.8 (27.7) Net cash (used in) / generated from discontinued operations (4.8) 4.0Impact of exchange rate fluctuations (8.2) (1.7)

Net (decrease) / increase in cash and cash equivalents (31.5) 27.5

Net cash (used in) / generated from continuing operating activities (14.4) 79.1Capex additions, net of disposals (20.0) (26.2)Free cash flow (34.3) 52.9

Supplemental disclosure of cash flow information:Accretion on Series B Convertible Redeemable Preferred Stock 11.9 12.8

Please refer to our Form 10-Q for the period ended September 30, 2015 for the full financial statements and related notes and disclosures.

25

US$ mThree months ended September 30, Nine months ended September 30,

2014 2015 2014 2015Reconciliation to Consolidated Statements ofOperations:

Operating income (8.0) 28.9 0.0 48.1

Depreciation of property, plant and equipment 7.9 7.0 24.0 20.9

Amortization of intangible assets 3.1 2.7 9.5 9.6

Other items 1 — (30.2) 6.9 (12.0)

OIBDA 2.9 8.4 40.4 66.6

OIBDA Reconciliation

1Other items for the three and nine months ended September 30, 2015 reflects activity related to the tax audits in Romania. Since the charge of US$ 12.0 million recorded during the fourth quarter of 2014and the charge of US$ 18.2 million recorded during the first quarter of 2015 were not included in OIBDA, our reversal of these charges during the third quarter of 2015 has similarly been excluded from OIBDA(see our Form 10-Q for the period ended September 30, 2015 for more information). Other items for the nine months ended September 30, 2014, is comprised of a fine the competition committee in Sloveniawas seeking to impose which was subsequently overturned in the fourth quarter of 2014.

26


Last Twelve Months (LTM) OIBDA Reconciliation toConsolidated Statements of Operations by Quarter

Last Twelve Months (LTM)

US$ m Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015Reconciliation to ConsolidatedStatements of Operations:

LTM operating (loss) / income (559.6) (180.0) (160.9) (133.5) (97.0) 38.3 35.7 49.5 86.4

Depreciation of property, plant andequipment

34.2 37.1 36.0 36.0 36.1 32.8 31.8 30.7 29.7

Amortization of intangible assets 19.9 14.8 14.1 13.7 13.1 12.3 12.6 12.9 12.5

Other items 1 — — — 6.9 6.9 12.0 30.2 23.3 (6.9)

Impairment charge 517.8 79.7 79.7 79.7 79.7 — — — —

LTM OIBDA 12.3 (48.4) (31.1) 2.8 38.8 95.4 110.3 116.3 121.7

27


1Other items reflects a fine the competition agency in Slovenia was seeking to impose relating to the operations there prior to 2012, which was subsequently overturned, and accruals that weresubsequently reversed related to the tax audits in Romania (see our Form 10-Q for the period ended September 30, 2015 for more information). Since the charges were not included in OIBDA, ourreversal of the charges has similarly been excluded from OIBDA.

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