Croatia Nova TV

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Croatia Nova TV
UKRAINE
CZECHREPUBLIC
SLOVAK REPUBLIC
ROMANIA
SLOVENIA

• CME Investor Meeting
• Prague
• November 2005

CROATIA
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Croatia
Country and Economy and Advertising Market 2005
Key Facts Population Per capita GDP2 Real
GDP growth2 Unemployment rate2 TV
ownership1 Average daily viewing minutes Total
advertising market TV advertising market TV
advertising market growth TV advertising spend,
per capita TV advertising spend, percent of GDP

2000 2005 4.2 million5 4.4 million1 4,206 8
,176 2.9 3.0 16.1 13.8 1.4 million 1.5
million 1323 190 200 million4 108 - 120
million4 4 (US terms)4 22.384 0.284
Source Informa Telecoms and Media
Advertising Market Breakdown 2005
Source 1Informa Telecoms and Media / 2ING /
3ZenithOptimedia / 4CME calculated or estimates /
5Global Insight
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Croatia
Economy and Advertising Market
Acquired July 2004 Ownership
Economic 100 Licence expiry 2010 Broadcast
reach 3.6 m Hours broadcast
20.5
hr Locally produced hours broadcast 21 / 3.4
h/day Prime-time locally produced 12 / 2.1
h/day All day audience share 9 months 2005
14 Prime time audience share 9 months
2005 14 TV advertising share 2004
20 Local audience
ratings agency AGB Nielsen Media Research
Since acquisition in July 2004
Source The Media Map Yearbook 2004 /
ZenithOptimedia / Eutelsat / Selecta / CME
Estimates
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Croatia
Competition

• Main competition RTL and strong state television

Cable penetration 16 of households (0.23
million) (2005)2 Satellite penetration 23 of
households (0.34 million) (2005)2
Source AGB Puls
Stations All Day Audience Share Nine months to
September 2005
Source 1 September 2005 2Informa Telecoms and
Media / The Media Map Yearbook 2004
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Croatia
Regulatory Environment
Regulating Body License Period Expiry
Dates
The Council for Electronic Media 10
Years 2010
License / Advertising Conditions

• Minimum of 20 of daily broadcasted programming
  must be local production.
• Maximum of 15 of broadcasting time permitted for
  advertising. Hourly maximum of 12 minutes. One
  break each 45 minutes in movies 20 min. minimum
  between breaks.
• No advertising during news or religious
  broadcasts.
• Advertising for tobacco not allowed alcohol
  only beer and wine allowed no erotic services
  (call-in phone or similar).
• State TV must have 50 Croatian language.
• State TV only allowed 9 minutes per hour. Cannot
  break a program to show advertising must show
  complete programs.
• State TV Programs 30 minutes or less cannot be
  interrupted.

Source The Media Map Yearbook 2004
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Croatia
Clients

• 2005 YTD net revenue is 16.8 million
• Approximately 250 advertising clients in total

• Procter Gamble
• Johnson Wax
• VIP-net GSM
• Hrvatske telekomunikacije
• Hrvatska gospodarska komora
• Johnson Johnson
• Agrokor
• Sanoma Magazines Zagreb
• Kra
• Reckitt-Benckiser

Top Ten Advertising Clients
New advertisers or product categories who have
recently entered the market include Tele 2 (
active from October ) and Optima telekom
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Croatia
Advertisers Profile

Source ZenithOptimedia 2004
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Croatia
Description of Operations
Ownership 100 Economics 100 Operating
Companies Operativna Kompanija d.o.o. (OK)
License Companies Nova TV d.d. (Nova
TV) Stations Nova TV

Content and Target Audience
Nova
content 20 locally produced programming,
news, series, movies, entertainment and
sport target audience primarily 10 49 year
old viewers
9
Transmission Coverage
1st stage - completed by end of March 2005
2nd stage - completed by end of May 2005
3rd stage - completed in August 2005
4th stage to be completed by end of 2005
5th stage - in year 2006
10
Croatia
All day all country audience share and revenue
share nine months to September 2005
power ratio 1.4
Source AGB Media Nielsen Resarch
Source CME segment revenue share, CME estimate
of total segment television advertising spend
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Croatia
NOVA TV versus competition hour by hour ratings
nine months to September 2005
exit
access
exit
day
prime
Source Nova TV, 9 months 2005
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Croatia
Estimated 2005 Full Year Performance
Net Revenue 25 EBITDA (13)
For a reconciliation of non-GAAP financial
measures presented here to most comparable GAAP
financial measures, please see the corresponding
reconciliation slide in the CEO Overview -CME
Investor Meeting November 2005 presentation,
which is published on our website at
www.cetv-net.com.
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Croatia
Looking Ahead

• Continues building up strong News programme
  central newscast (Dnevnik Nove TV) and daily
  infotainment magazine (Nova navecer)
• Produce an average of 3 hours of local
  programming / day scheduled 1800 2200 .
• Maintain focus on announced financial plan
• Achieve EBITDA breakeven during 2007
• Become EBITDA positive from 2008 onwards
• Become cash positive from 2009