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2. Our pay TV strategy is to play in three areas to secure scale,profitability and long term growthCurrent universeAs % of MTGPlatformStrategysize pay-TV Grow ARPU by raising prices & 1. DTH satellite 20% of HHs Highsell add-on services Grow subscriber base as triple 2. Virtual operator~50% of HHsModerateplay pay-TV penetration rises Capitalise on first mover 3. Online/OTT100% of HHsLowadvantage to grow subscriberbase, service offering & ARPUProduct life cycle (conceptual)SubscribersSatellite Virtual operator Online/OTT Time2 3. We are today operating along a traditional value chain A linear value chain for the linear TV era Customers typically have two relationships we control both: The payment relationship with the platform / network operator The emotional relationship with the TV channels / contentStudios / content Content ChannelsPlatform / networkownersdistributors operators MTGs role in the traditional value chain is as: Channel broadcaster DTH satellite operator Virtual operator within 3rd party cable and IPTV networks3 4. Generating growth in the satellite universe by raising pricesand adding servicesPay TV premium pricing,700Sweden (SEK) Our satellite business provides scale & a stable base:600 Satellite has maintained its ~20% share of total pay TV33 %subscribers in Scandinavia500400 Room for further price increases:300Viasat We have consistently increased prices each year 200Canal Digital We are still the clear premium price market leader Boxer100BasicMid tier Mid+sportExt. basic Mid+movieGold Strong uptake of add-on services: HD TV Multi-room Add-on services, Scandinavia40% Additional potential of new services:30% Video on demand 20% 3D TV10% Portability / multi-screen access0% 200820092010 20114 Sources: Viasat Broadcasting researchPVRMulti-roomHD 5. Our virtual operator model generates subscriber growthoutside the satellite universeViasat premium We have signed virtual operator subscribers, Scandinaviaagreements with the major cable 1 200and IPTV operators in Scandinavia 1 000 CAGR 5.9 %800 Agreements provide direct salesaccess to end-users in 3rd party600networks400200 Enabling us to market and sell our0own pay-TV packages to a new 20062007 2008 20092010universe of potential subscribers DTH satellite3rd party networks5Sources: Viasat Broadcasting research 6. Structural changes are also growing the virtual operator universe The virtual operator universe will continue to grow and further extend our footprint : IPTV will grow with the rising penetration of bundled voice / data / TV offerings Cable and IPTV operators will digitalise the large analogue cable universe Illustration of anticipated development ofcompetitive landscapeIPTV Platform market sharesCable - digitalGrowing universefor virtualoperator modelCable - analoguePay DTT + Free view DTTSatellite/DTHTime6 7. Over-the-top (OTT) technology is changing the traditional model Online distribution Over-the-top Everyone can now have an end-user relationship Opens up for the market to new entrants Studios/contentNetwork operators ownersTV channels Hardware OEMs Content distributorsOnline services There is more need than ever for an aggregator Risk for confusion as end-users do not know or care who produced Spiderman All they care about is: Easy access to content they want, when they want and where they want Paying money to one (or few) trusted suppliers Our aim is to be the iTunes of video - an easy to use & convenient one-stop-shop for premium content at a reasonable price7 8. Content remains king in the OTT worldSample exclusive MTG content MoviesSport Brands Premium content is the driver of consumer choice & willingness to pay Exclusive content is the differentiator Local content is key Powerful and differentiated brands are the quality stamps8 9. OTT the opportunity Potential universe,Scandinavia (m HHs) 8.3 Increase footprint for our pay TV businessNew addressable universe3.0 Retain end-user relationship and1.6 reduce dependency on network gatekeepersDTHIPTV & digital Broadbanduniverse cable universeuniverse Generate incremental revenues from on-demand services Net Nordic pay-TV subscriberintake Jan. 2010 Mar. 2011 (000s) Adding to our pay TV subscriber base:83 OTT SVOD accounted for ~35 % of MTGs total net Nordic pay TV subscriber intake between Jan 2010 & 28 Mar 2011 DTHVirtualOTT operator9Sources: Viasat research-32 10. High quality broadband infrastructure in place Internet penetration ( % of households)100% 88% High Internet penetration level 80% 70% 75%65% Internet penetration of 88% inScandinavia is amongst the highest in50%the world25%0%ScandinaviaUSUnitedEuropean Large proportion of consumer devicesKingdom Union already web-enabledBandwidth required for Viaplay High broadband access speeds 492% of Swedish households have Average household broadband more than 2 Mb/s internet accessaccess speed of 9-11 Mb/s in Sweden 3 The majority of households already Mbit/s 2have sufficient broadband speeds toreceive high quality online services10 PCs Mobiles Tablets Connected Set-top (iPhone/Android)TVs boxesLowest qualityHighest qualitySource: Eurostat, Broadband and Connectivity Households (ISOC_BDE15B_H), April 2011;10Swedish Post & Telestyrelsen; Strategy Analytics, Broadband Service Provider PerformanceBenchmarking: North America Q4 2010 11. Viaplay is the umbrella brand for our OTT services Aggregating premium content behind a subscription online pay TV Viaplay is an online one-stop-shop for premium TV, Sports and Movies More than 1,000 SVOD* movies every month More than 4,000 TVOD* movies 1,000 sport events every year TV-series and premium local productions from MTGs free TV channelsNotes: Subscription video on demand (SVOD);11Transaction video on demand (TVOD) 12. Industry context Subscription (SVOD) 3. SVOD Free-TVCatch-upPremium content content 1. AVOD2. TVOD Transaction (TVOD)12 13. We are not only platform agnostic but also device agnostic Multi-screen accessTV set-topSmartboxesphones Enjoy one mother subscription on any device Access the subscription online anywherePC/MacTablets (portability offered to any subscriber - DTH as well as Viaplay)Web-connected Access all services on demand anytime TV-sets Game consoles OTT set-top boxes Viaplay the evolution of television Yesterday Today13 14. Exploring new frontiers & identifying new universes Well positioned for continued growth: Unique benefits from integrated business model valid for all distribution forms Unique volume opportunities in 3rd party networks Viaplay unique market leading product for next generation pay TV Jacobs space cab14