Croatia

1
Croatia

• Nova TV

2
Croatia
Country and Economy Update 2006
Sources ING, Informa, Global Insight

• Expected EU accession in 2009
• Largest ever foreign acquisition in Croatia is in
  progress 2.5 billion investment in a
  pharmaceutical company (Pliva)

3
Background
Stations All Day Audience Share Six months to
June 30, 2006
1 Nova TV was acquired in July 2004 Sources CME
Estimates, AGB Nielsen Media Research
4
Progress since acquisition
NOVA TV in 2004
and in 2006

• Improved technical reach to 88
• Company restructured and re-organized. New
  management team
• Significant improvement in technical facilities.
  Move to new premises in November 2005 with state
  of the art news studio
• Trained staff supported by Slovenian expertise
• New visual identity and graphics

• Technical reach 65 (competition gt94)
• Technically and managerially substandard
• No studio and inadequate facilities. Poor library
  with no access to major studio production.
  Dependent on outsourced production for local
  content
• Inexperienced journalists and staff
• No visual identity and no capability to create
  self-promotion or program graphics

5
Creating momentum - building audience share

• Changes in scheduling (Central news. Evening
  news. Daily news. Access prime time show domestic
  production) increased share
• 6 new shows for the fall season (started with own
  co-production)
• Significant image improvement compared to last
  survey 9 months ago

Current Performance - Audience share January 1
August 31, 2005 vs. 2006
Source AGB NMR All day 02.00-01.59 Prime
time 19.00-22.59
6
Autumn Programming Schedule
The first week in September showed excellent
results
Prime time ratings 75 Prime time audience
share 67
4th September 10th September, 2005 vs. 2006.
Target group 18 - 49
7
Autumn Programming Schedule
News drives the audience
16
15
33
49
8
New Media Development

• July 10th launch of the first Croatian video
  news portal www.dnevnik.hr
• Launched with the cooperation and support of POP
  TV team sharing the same platform

71.074
19.963
12.813
1.720
9
Croatia
Segment Net Revenues EBITDA and EBITDA Margin
As reported since acquisition in July 2004.
For a reconciliation of non-GAAP financial
measures presented here to the most comparable
GAAP financial measures, please see the
corresponding reconciliation slides on pages 52
53 of the Q2 2006 results presentation on
www.cetv-net.com.
10
Croatia
Looking Ahead Keys to Success

• Growing audience share will drive revenue
• 2006 fall season is key for building trust with
  advertisers
• Investments in programming/own production in 2007
• Introducing new production and creative talent
• Marketing support in print media