Q4 2018 Earnings call presentation · 2018 Earnings Call Presentation. Cautionary Language This...

2018 Earnings Call Presentation

Cautionary Language

This presentation contains forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions. Statements that use the terms“believe”, “anticipate”, “trend”, “expect”, “plan”, “estimate”, “forecast”, “intend” and similar expressions of a future or forward-looking nature identify forward-looking statements forpurposes 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-lookingstatements 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 our control and some of whichmight 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, our financial position, results of operations and cash flows could differ materially from those described in or contemplated by the forward-lookingstatements contained in this presentation.

Important factors that contribute to such risks include, but are not limited to, those factors set forth under "Risk Factors” in our most recent Annual Report on Form 10-K as well as thefollowing: the effect of changes in global and regional economic conditions including as a result of the quantitative easing program implemented by the European Central Bank; theeconomic, political and monetary impacts of Brexit; levels of television advertising spending and the rate of development of the advertising markets in the countries in which we operate;our ability to refinance our existing indebtedness; the extent to which our debt service obligations and covenants may restrict our business; our exposure to additional tax liabilities aswell as liabilities resulting from regulatory or legal proceedings initiated against us; our success in continuing our initiatives to diversify and enhance our revenue streams; our ability tomake cost-effective investments in our television businesses, including investments in programming; our ability to develop and acquire necessary programming and attract audiences;and changes in the political and regulatory environments where we operate and in the application of relevant laws and regulations.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in our filings. Fora more detailed description of these uncertainties and other features, please see the “Risk Factors” section in our most recent Annual Report on Form 10-K filed with the U.S. Securitiesand 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 revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial MeasuresWhile CME reports its results in accordance with generally accepted accounting principles in the United States (“GAAP”), this presentation also refers to several non-GAAP financialmeasures, including OIBDA, OIBDA margin, free cash flow and unlevered free cash flow. These non-GAAP financial measures are used in managing the business, and as suchmanagement believes they may provide meaningful information to investors about underlying trends in our business. While our reporting currency is the dollar, our consolidated revenuesand costs are divided across a range of European currencies and CME Ltd.’s function currency is the Euro. Given the significant movement of the currencies in the markets in whichwe operate against the dollar, we believe that it is useful to provide percentage movements based on actual (“% Act”) percentage movements, which includes the effect of foreignexchange, as well as like-for-like percentage movements (“% Lfl”). The like-for-like percentage movement references reflect the impact of applying the current period average exchangerates to the prior period revenues and costs.

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. Please see the attachedappendix for a description of non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures.

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

OIBDA

250

200

150

100

50

02017 FX FY 2017@2018 rates FY 2018

179.8 4.3 184.1

222.7

Net Revenues

800

600

400

200

02017 FX FY 2017@2018 rates FY 2018

642.9 25.3 668.2 703.9

US$ m 5%

21%

OIBDA Margin 28% On July 31, 2018, we completed the previously announced sale of our operations in Croatia. Accordingly, the Croatian operations are presented as discontinued operations for all periods in thispresentation. The agreement to sell our operations in Slovenia was terminated on January 18, 2019. As a result, the Slovenian operations are not presented as held for sale, and the discussion in thispresentation relates to our continuing operations in all five operating segments.For a reconciliation of OIBDA to Operating Income, see Non-GAAP Financial Measures beginning on slide 24.

32% 28%

Operating Income

250

200

150

100

50

0FY 2017 FX FY 2017@2018 rates FY 2018

139.9 2.1 142.0

177.625%

4

Consolidated Results

US$ m US$ m

¹ Reflects the impact of applying the most recent quarterly period average exchange rates to the prior period revenues.

Net Revenues by Quarter

5

Q4

220

200

180

160

140

120

100

80

60

40

20

0 Q1 2013

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

Q2 2013

Q2 2014

Q2 2015

Q2 2016

Q2 2017

Q2 2018

Q3 2013

Q3 2014

Q3 2015

Q3 2016

Q3 2017

Q3 2018

Q4 2013

Q4 2014

Q4 2015

Q4 2016

Q4 2017

Q4 2018

103115

126132

144

157

135

152164

170179 182

97107

113123

131137

165

183 187

201213

228

+3% +8%

+13%+8%

+9%

+10%+5%

+7%

+6%

+1% +11%

+5%

+6%

Q1

+9%

+2%

Actual Exchange RatesConstant Exchange Rates1

Q2 Q3 Q4

+9%

US$ m

220

200

180

160

140

120

100

80

60

40

20

0 Q1 2013

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

Q2 2013

Q2 2014

Q2 2015

Q2 2016

Q2 2017

Q2 2018

Q3 2013

Q3 2014

Q3 2015

Q3 2016

Q3 2017

Q3 2018

Q4 2013

Q4 2014

Q4 2015

Q4 2016

Q4 2017

Q4 2018

112

127

114 117124

157149

173

151159

165

182

112120

108117

132137

198198

178190

221228

US$ m Q1 Q2 Q3

+8%

+12%

+4%

+7%

FY

21%

24%

28%

32%

2015 2016 2017 2018

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%Q1 Q2 Q3 Q4

8% 9%

13%16%

31%

17%

34%

20%

35%

23%

33%

26%

40%

For a reconciliation of OIBDA to Operating Income, see Non-GAAP Financial Measures beginning on slide 24.

OIBDA Margin by Quarter

6

28%

31% 31%

250

200

150

100

50

0

-50

-100Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

(57)(41)

(8)

29

87101 107 113 115 121

129138 142 147 154 161

180194 199

208223

$m @ actual rates

For a reconciliation of OIBDA to Operating Income, see Non-GAAP Financial Measures beginning on slide 24.

Last Twelve Months (LTM) OIBDA Trend by Quarter

7

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

$113 $110$114 $115

$129

$104$100 $100

$92

$77$83

$68 $69

$56

$39

$29 $29 $27

10.0 8.8 8.78.0 8.2

7.5 7.56.8 6.9

6.3 6.1 5.8 5.44.8

4.43.8 3.5 3.5

8

Net leverage ratio3Annualized run-rate debt service obligations2

Wtd. averagecosts of

borrowing110.5% 10.6% 10.7% 10.7% 11.7% 9.5% 9.2% 9.2% 8.8% 7.3% 7.3% 6.0% 6.0% 5.0% 4.1% 3.5% 3.5% 3.6%

Gross debt1 $1,072 $1,042 $1,067 $1,073 $1,102 $1,104 $1,090 $1,088 $1,051 $1,065 $1,150 $1,128 $1,155 $1,123 $943 $821 $812 $743

Declining Net Leverage Ratio and Debt Service Obligations

1 Based on published quarterly data and end of period exchange rates. Gross debt includes related payables and excludes lease obligations.2 Calculated as gross debt multiplied by weighted average cost of borrowing.3 As defined in the reimbursement agreement with Warner Media.4 Pro Forma for EUR 60.0 million (approximately $68.9 million) debt repayment on January 31, 2019.

Q2 2018 Q3 2018 Q4 2018 Q4 2018 PF4

Q4 2018Pro Forma

Sources: GARB (Bulgaria), ATO – Nielsen Admosphere; Mediaresearch (Czech Republic), Kantar Media (Romania), PMT/ TNS SK (Slovakia), AGB Nielsen Media Research (Slovenia) all shares in main TV sales target group.

Audience Performance Overview

50

45

40

35

30

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

45 46

40 4045

42 4239 38

41

Bulgaria50

40

30

20

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

40 38 36 36 37

37 35 36 35 35

Czech Republic

50

40

30

20

10

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

30 30 27 28 29

27 27 26 26 27

Romania45

35

25

15

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

29 31 29 28 30

28 29 28 27 30

Slovakia

All Day Audience SharePrime Time Audience Share

9

50

40

30

20

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

48 4652

4753

40 3641 38 41

Slovenia

US$ m

Net Revenues

Q4 2017 Q4 2018

Variance

FY 2017 FY 2018

Variance

Actual % Lfl %1 Actual % Lfl %1

Bulgaria 25.2 25.4 0.6% 4.2% 77.3 84.6 9.4% 5.3%

Czech Republic 73.5 75.9 3.3% 7.7% 209.0 234.0 11.9% 5.6%

Romania 63.3 64.8 2.5% 6.8% 191.2 201.5 5.4% 3.2%

Slovak Republic 34.4 36.2 5.4% 9.1% 97.7 106.8 9.3% 5.5%

Slovenia 25.1 26.1 3.9% 7.5% 68.7 79.6 15.9% 12.0%

Intersegment revenues (0.2) (0.2) NM² NM² (1.2) (2.6) NM² NM²

Total net revenues 221.3 228.3 3.2% 7.2% 642.9 703.9 9.5% 5.3%

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.

The percentage growth figures have been derived from data included in our Form 10-K for the year ended December 31, 2018.

10

Revenues by Segment

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.3 Includes 4.4 million and 3.9 million of non-cash charges for stock-based compensation in 2017 and 2018, respectively.

The percentage growth figures have been derived from data included in our Form 10-K for the year ended December 31, 2018.

See also Non-GAAP Financial Measures beginning on slide 24.

US$ mOIBDA

Q4 2017 Q4 2018Variance

FY 2017 FY 2018

Variance

Actual % Lfl %1 Actual % Lfl %1

Bulgaria 9.6 8.5 (10.8)% (7.7)% 16.2 21.6 33.1% 33.0%

Czech Republic 34.1 35.6 4.2 % 8.6 % 82.7 94.6 14.4% 9.2%

Romania 21.6 27.0 25.0 % 30.1 % 73.4 85.7 16.8% 14.0%

Slovak Republic 12.9 17.9 39.0 % 44.1 % 23.8 27.9 17.2% 16.2%

Slovenia 8.8 10.5 19.5 % 23.9 % 14.3 22.5 57.9% 57.9%

Eliminations 0.0 0.0 NM2 NM2 0.0 0.0 NM2 NM2

Operations sub-total 87.0 99.6 14.5 % 19.0 % 210.4 252.4 20.0% 16.7%

Corporate3 (10.5) (8.8) 16.2 % 12.7 % (30.6) (29.8) 2.9% 7.8%

Total 76.4 90.7 18.7 % 23.4 % 179.8 222.7 23.9% 20.9%

OIBDA by Segment

11

12

Segment Review

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

Sources: Audience share, ATO - Nielsen Admosphere; Mediaresearch (all audience share data is for the 15-54 target group). TV ad market and TVad market share represents CME’s internal estimates at constant currency exchange rates.

US$ m Q42017

Q42018 % Act % Lfl¹ 2017 2018 % Act % Lfl¹

TV advertising revenues 66.9 67.3 0.5% 4.8% 188.4 206.2 9.5% 3.3%

Carriage fees &subscription revenue 3.4 4.1 22.8% 28.0% 12.1 16.0 31.5% 23.0%

Other revenues 3.2 4.5 40.0% 46.6% 8.5 11.8 38.7% 31.7%

Net revenues 73.5 75.9 3.3% 7.7% 209.0 234.0 11.9% 5.6%

Costs charged inarriving at OIBDA 39.4 40.4 2.5% 6.9% 126.4 139.4 10.3% 3.3%

OIBDA 34.1 35.6 4.2% 8.6% 82.7 94.6 14.4% 9.2%

OIBDA Margin 46.4% 46.8% 0.4p.p. 0.4p.p. 39.5% 40.4% 0.9p.p. 1.3p.p.

Czech Republic: Segment Results

Total TV Ad Market Year-on-Year Change

13

6%

4%

2%

0%

2017 2018

4%

3%

TV ad market & Audience Performance

TV Ad Market Share

Prime Time Audience Share

All Day Audience Share

80%

60%

40%

20%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

62 59 58 61 63

40 38 36 36 37

37 35 36 35 35


Sources: Audience share, Kantar Media (all audience share and leadership data is for the 18-49 Urban target group).TV ad market share represents CME’sinternal estimates at constant currency exchange rates.

US$ m Q42017

Q42018 % Act % Lfl¹ 2017 2018 % Act % Lfl¹

TV advertising revenues 50.9 51.4 0.9 % 5.1 % 143.7 150.1 4.4 % 2.4 %

Carriage fees &subscription revenue 11.3 11.9 5.4 % 9.8 % 44.0 46.7 6.1 % 3.4 %

Other revenues 1.1 1.6 44.9 % 50.9 % 3.5 4.7 34.0 % 30.8 %

Net revenues 63.3 64.8 2.5 % 6.8% 191.2 201.5 5.4 % 3.2 %

Costs charged inarriving at OIBDA 41.6 37.8 (9.3)% (5.4)% 117.8 115.8 (1.7)% (3.6)%

OIBDA 21.6 27.0 25.0 % 30.1 % 73.4 85.7 16.8 % 14.0 %

OIBDA Margin 34.2% 41.7% 7.5 p.p. 7.5 p.p. 38.4% 42.5% 4.1 p.p. 4.0 p.p.

Romania: Segment Results

20%

15%

10%

5%

0%

2017 2018

12%

4%



14

TV Ad Market Share



70%

50%

30%

10%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

57 58 5559 58

30 30 27 28 29

27 27 26 26 27


TV AD Market Share



75%

65%

55%

45%

35%

25%

15%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

59 60 61 60 62

29 31 29 28 30

28 29 28 27 30


Sources: Audience share, PMT / TNS SK (all audience share and leadership data is for the 12-54 target group). TV ad market share represents CME’sinternal estimates at constant currency exchange rates.

Slovak Republic: Segment Results

US$ m Q42017

Q42018 % Act % Lfl¹ 2017 2018 % Act % Lfl¹

TV advertising revenues 31.0 33.0 6.3 % 10.0 % 85.7 94.0 9.7 % 6.0 %

Carriage fees &subscription revenue 1.9 2.0 4.4 % 8.1 % 7.6 8.6 12.5 % 8.1 %

Other revenues 1.4 1.2 (11.6)% (8.4)% 4.4 4.3 (3.5)% (8.5)%

Net revenues 34.4 36.2 5.4 % 9.1 % 97.7 106.8 9.3 % 5.5 %

Costs charged inarriving at OIBDA 21.5 18.3 (14.7)% (11.7)% 73.9 78.9 6.8 % 2.2 %

OIBDA 12.9 17.9 39.0 % 44.1 % 23.8 27.9 17.2 % 16.2 %


10%

8%

6%

4%

2%

0%

2017 2018

4% 4%


15


Sources: Audience share, GARB (all audience share and leadership data is for the 18-49 target group). TV ad market share represents CME’s internalestimates at constant currency exchange rates.

Bulgaria: Segment Results

US$ m Q42017

Q42018 % Act % Lfl¹ 2017 2018 % Act % Lfl¹

TV advertising revenues 18.9 18.3 (3.2)% 0.3 % 53.4 58.4 9.2% 5.4 %

Carriage fees &subscription revenue 5.1 5.2 2.6 % 6.1 % 19.5 21.0 7.8% 3.1 %

Other revenues 1.2 1.9 50.6 % 56.1 % 4.4 5.3 18.5% 13.8 %

Net revenues 25.2 25.4 0.6 % 4.2 % 77.3 84.6 9.4% 5.3 %

Costs charged inarriving at OIBDA 15.7 16.8 7.7 % 11.5 % 61.1 63.0 3.1% (1.7)%

OIBDA 9.6 8.5 (10.8)% (7.7)% 16.2 21.6 33.1% 33.0 %

OIBDA Margin 38.0% 33.6% (4.4) p.p. (4.3) p.p. 21.0% 25.6% 4.6 p.p. 5.4 p.p.


6%

4%

2%

0%

2017 2018

4%

5%


16

TV AD Market Share



60%

50%

40%

30%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

52 51 50 50 51

45 46

40 40

45

42 4239 38

41


Sources: Audience share, AGB Nielsen Media Research (all audience share and leadership data is for the 18-54 target group). TV ad market sharerepresents CME’s internal estimates at constant currency exchange rates.

Slovenia: Segment Results

US$ m Q42017

Q42018 % Act % Lfl¹ 2017 2018 % Act % Lfl¹

TV advertising revenues 19.7 19.0 (3.7)% (0.3)% 52.3 53.8 2.9% (0.8)%

Carriage fees &subscription revenue 4.0 5.5 36.8 % 41.6 % 12.6 21.5 71.1% 66.8 %

Other revenues 1.4 1.6 16.1 % 20.2 % 3.8 4.3 11.7% 8.3 %

Net revenues 25.1 26.1 3.9 % 7.5 % 68.7 79.6 15.9% 12.0 %

Costs charged inarriving at OIBDA 16.3 15.6 (4.6)% (1.3)% 54.4 57.1 4.8% 0.5 %

OIBDA 8.8 10.5 19.5 % 23.9 % 14.3 22.5 57.9% 57.9 %



6%

4%

2%

0%

-2%

-4%

2017 2018

4%

(1)%


17

TV AD Market Share



85%

75%

65%

55%

45%

35%

25%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

77

69

80

71

79

48 4652

4753

4036

41 38 41

800

600

400

200

02019 2020 2021 2022 2023

241

537

34

1 Translated at FX rates as at December 31, 2018. On January 31, 2019, we repaid EUR 60.0 million (approximately $68.9 million) of the 2021 Euro Loan using cash generated by the business.

18See also Non-GAAP Financial Measures beginning on slide 24. Amounts in table derived from data in our Form 10-K for the year ended December 31, 2018.

US$ m 2017 2018 Variance

OIBDA 179.8 222.7 42.9Change in working capital (4.1) (19.8) (15.7)Interest, taxes, and other (65.3) (95.8) (30.5)Net investment in programming (17.1) 1.9 19.0Net cash generated from continuing operations 93.3 109.0 15.7Capex (27.9) (24.5) 3.4Free cash flow 65.4 84.5 19.1Cash paid for interest (including mandatory cash-pay guarantee fees) 47.2 43.4 (3.8)Cash paid for guarantee fees previously paid in kind — 27.3 27.3Cash paid for guarantee fees that may be paid in kind 8.3 0.8 (7.5)Unlevered free cash flow 120.9 156.0 35.1

Debt Maturity Profile and Free Cash Flow

3

Maturity profile as at December 31, 20181

(US$ m)

2021 Euro Loan Accrued Guarantee Fees2023 Euro Loan

800

600

400

200

02019 2020 2021 2022 2023

172

537

34

Maturity profile as at January 31, 20191

(US$ m)

Business Outlook

Based on our view today, on a five country basis in 2019 we expect:

• OIBDA growth of 10% - 12% at constant exchange rates.

• Unlevered free cash flow growth of 8% - 10% at actual rates.

Impact of foreign exchange rates on guidance:

• A 1% change in the average EUR/USD rate for the full year would result in a change in OIBDA

of approximately US$ 2 million.

Supplemental cash flow information:

• Cash paid for interest and guarantee fees in 2019 expected to be less than US$ 27 million.

• Cash paid for income taxes in 2019 expected to be around US$ 35 million.

• Capital expenditures expected to be around US$ 25 million.

The outlook above does not include the impact of any unanticipated legal proceedings or other actions that may occur from time-to-time due to managementdecisions and changing business circumstances.

19

2020

Earnings call Appendix

21

21

Please refer to our Form 10-K for the year ended December 31, 2018 for the full financial statements and related notes and disclosures.

Summary Consolidated Statements of Operations

US$ m (except per share data) Year ended December 31,2017 2018

Net revenues 642.9 703.9Content costs 293.7 309.4Other operating costs 55.9 56.7Depreciation and amortization 39.9 41.9Selling, general and administrative costs 113.4 118.2Operating income 139.9 177.6Interest expense (83.2) (49.1)Loss on extinguishment of debt (0.1) (0.4)Non-operating income / (expense) 16.9 (3.2)Provision for income taxes (22.5) (27.8)Income from continuing operations 51.1 97.1(Loss) / income from discontinued operations, net of tax (1.6) 60.5Net Income 49.4 157.6Net loss attributable to noncontrolling interests 0.3 0.1Net income attributable to CME Ltd. 49.8 157.7

Net (loss) / income per share:Continuing operations — basic 0.16 0.27Continuing operations — diluted 0.12 0.25Discontinued operations — basic (0.01) 0.18Discontinued operations — diluted 0.00 0.17Attributable to CME Ltd. — basic 0.15 0.45Attributable to CME Ltd. — diluted 0.12 0.42

22

Summary Consolidated Balance Sheet

US$ m As at December 31, 2017 As at December 31, 2018

Current assets 361.5 374.1

Current assets held for sale1 59.7 —

Non-current assets 1,206.8 1,114.3

Total assets 1,628.1 1,488.4

Current liabilities 172.7 139.7

Current liabilities held for sale1 14.3 —

Non-current liabilities 1,182.3 850.0

Total liabilities 1,369.3 989.7Series B Convertible Redeemable Preferred Stock 264.6 269.4

CME Ltd. shareholders' (deficit) / equity (5.8) 229.0

Noncontrolling interests 0.0 0.3

Total liabilities and equity 1,628.1 1,488.4

Cash & cash equivalents 58.7 62.0

Gross debt2 (1,165.1) (827.0)

Net debt (1,106.4) (765.0)

¹ On July 9, 2017, we agreed to sell our Croatian and Slovenian operations, subject to obtaining regulatory approvals and other customary closing conditions. The sale of our Croatian operations wascompleted on July 31, 2018. The agreement to sell our Slovenian operations was terminated on January 18, 2019, and as a result the Slovenian operations are not presented as held for sale.2 Gross debt is the full face value of all outstanding debt and related payables.Please refer to our Form 10-K for the year ended December 31, 2018 for the full financial statements and related notes and disclosures.


US$ mYear ended December 31,

2017 2018

Net cash generated from continuing operating activities 93.3 109.0

Net cash used in continuing investing activities (27.9) (24.5)

Net cash used in continuing financing activities (58.4) (182.4)

Net cash (used in) / generated from discontinued operations (0.1) 102.6

Impact of exchange rate fluctuations 11.0 (1.4)

Net increase in cash and cash equivalents 17.8 3.3

Supplemental disclosure of cash flow information and non-cash items from continuing operations:

Cash paid for interest (including mandatory cash-pay guarantee fees) 47.2 43.4

Cash paid for guarantee fees previously paid in kind — 27.3

Cash paid for guarantee fees that may be paid in kind 8.3 0.8

Cash paid for income taxes, net of refunds 15.1 28.4

Interest and guarantee fees paid in kind 23.3 3.8

Accretion on Series B Convertible Redeemable Preferred Stock 9.7 4.8

Summary Cash Flow

23

Non-GAAP Financial Measures

24

In this presentation we refer to several non-GAAP financial measures, including OIBDA, OIBDA margin, free cash flow and unleveredfree cash flow. We believe that each of these metrics is useful to investors for the reasons outlined below. Non-GAAP financial measuresmay not be comparable to similar measures reported by other companies. Non-GAAP financial measures should be evaluated inconjunction with, and are not a substitute for, US GAAP financial measures.

We evaluate our consolidated results and the performance of our segments based on net revenues and OIBDA. We believe OIBDA isuseful to investors because it provides a meaningful representation of our performance, as it excludes certain items that do not impacteither our cash flows or the operating results of our operations. OIBDA and unlevered free cash flow are also used as components indetermining management bonuses.

OIBDA includes amortization and impairment of program rights and is calculated as operating income / loss before depreciation,amortization of intangible assets and impairments of assets and certain unusual or infrequent items that are not considered by our co-CEOs when evaluating our performance. From January 1, 2018, stock-based compensation and certain operating costs incurred onbehalf of our segments at the corporate level have been allocated to our segments for purposes of evaluating their performance. Priorperiod information has been recast to conform to the current period presentation. Our key performance measure of the efficiency of ourconsolidated operations and our segments is OIBDA margin. We define OIBDA margin as the ratio of OIBDA to net revenues.

Following a repricing of our Guarantee Fees in March 2017 and April 2018, we pay interest and related Guarantee Fees on our outstandingindebtedness in cash. In addition to this obligation to pay Guarantee Fees in cash, we expect to use cash generated by the businessto pay certain Guarantee Fees that were previously paid in kind. These cash payments are all reflected in free cash flow; accordinglywe believe unlevered free cash flow, defined as free cash flow before cash payments for interest and Guarantee Fees, best illustratesthe cash generated by our operations when comparing periods. We define free cash flow as net cash generated from continuing operatingactivities less purchases of property, plant and equipment, net of disposals of property, plant and equipment and excluding the cashimpact of certain unusual or infrequent items that are not included in costs charged in arriving at OIBDA because they are not consideredby our co-CEOs when evaluating performance.

For additional information regarding our business segments, see Part II, Item 8, Note 20, "Segment Data" in our Form 10-K.

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US$ mYear ended December 31,

2017 2018Net cash generated from continuing operating activities 93.3 109.0Capex additions, net of disposals (27.9) (24.5)

Free cash flow 65.4 84.5Cash paid for interest (including mandatory cash-pay guarantee fees) 47.2 43.4Cash paid for guarantee fees previously paid in kind — 27.3

Cash paid for guarantee fees that may be paid in kind 8.3 0.8

Unlevered free cash flow 120.9 156.0

Non-GAAP Financial Measures - Reconciliation

US$ mThree months ended

December 31,Year ended

December 31,2017 2018 2017 2018

Operating income 65.5 80.8 139.9 177.6

Depreciation of property, plant and equipment 8.6 7.8 31.3 32.9

Amortization of intangible assets 2.2 2.2 8.6 9.0

Other items1 — — — 3.2

OIBDA 76.4 90.7 179.8 222.7

1 Other items consists solely of expense related to the accelerated vesting of RSUs with performance conditions in accordance with the terms of the corresponding award agreement following thecompletion of sale of the Company's Croatian operations on such date.

1Other items from Q2 2014 to Q2 2016 reflect accruals that were subsequently reversed related to tax audits in Romania, and a fine that was later overturned in Slovenia. Since the charges were not included inOIBDA, our subsequent reversal of those charges was similarly excluded from OIBDA. Other items in Q3 2018 consists solely of expense related to the accelerated vesting of RSUs with performance conditionsin accordance with the terms of the corresponding award agreement following the completion of sale of the Company's Croatian operations on such date. Please refer to our Form 10-K for the year ended December 31, 2018 for the full financial statements and related notes and disclosures.

Non - GAAP Financial Measures - Reconciliation

Last Twelve Months (LTM)

US$ m Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

LTM operating(loss) / income (184.9) (167.5) (140.6) (103.7) 33.0 29.4 43.0 80.3 89.5 114.9 122.9 102.0 105.7 110.6 116.9 123.4 139.9 152.6 156.2 162.3 177.6

Depreciation ofproperty, plant andequipment

33.8 32.9 32.8 32.9 30.0 29.0 28.0 27.2 25.4 25.7 26.4 26.9 27.5 27.9 28.5 29.7 31.3 32.6 33.6 33.8 32.9

Amortization ofintangible assets 14.8 14.1 13.7 13.0 12.3 12.6 12.9 12.5 12.3 10.8 9.5 8.9 8.3 8.3 8.3 8.4 8.6 8.8 9.1 9.1 9.0

Other items¹ — — 6.9 6.9 8.6 26.8 19.9 (10.1) (11.9) (30.1) (30.1) — — — — — — — — 3.2 3.2

Impairment charge 79.7 79.7 79.7 79.7 3.3 3.3 3.3 3.3 — — — — — — — — — — — — —

LTM OIBDA (56.7) (40.9) (7.6) 28.8 87.3 101.2 107.1 113.2 115.3 121.4 128.7 137.8 141.5 146.9 153.7 161.4 179.8 194.0 198.9 208.4 222.7

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