2015 Q3 Investor Presentation - s2.q4cdn.com · Q3 2015 Investor Presentation. Cautionary Statement...

Q3 2015Investor Presentation

Cautionary Statement Concerning Forward-Looking Statementsand Non-GAAP Financial Measures

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

CME is a Leading Television Broadcaster in CEE

Combined population: approx. 50 mCombined TV ad market size: approx. $908m

CME markets

3

Source: 2014 CME estimates at average 2014exchange rates

TV ad market size by geography

Croatia$101m

Czech Republic $308m

Slovenia$67m

Bulgaria$107m

SlovakRepublic$126m

Romania$199m

Source: IMF 2014 (GDP/Capita), CSU (Population Czech Republic), National Institute of Statistics (Population Romania), TNS (Population Slovak Republic), National Statistical Institute (Population Bulgaria), Statistical Bureau of Republic of Slovenia (Population Slovenia), Croatian Bureau of Statistics (Croatia)

4

Why invest in CME?

Our Strategy:

• Maintaining or increasing our audience andadvertising market share leadership

• Leveraging popular content

• Driving growth in advertising revenues throughpricing strategies

• Developing additional revenue streams

• Capitalizing on our operating leverage to growprofitability

• Optimizing our capital structure

Our Competitive Strengths:

• Market leading presence ontelevision

• Leading media brands

• Our people

• Strong local content productionand program library

5

Q3 Audience Performance Overview

Variance in percentage points

2014 2015

Q3 All Day Audience Share ¹

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%

2014 2015

Q3 Prime Time Audience Share ¹

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

+2.3+0.5

-2.5-0.7

-1.5 +0.0

+2.5+0.7

-2.7

+0.1-2.3

+0.8

6

YTD Audience Performance Overview

Variance in percentage points

YTD 2014 YTD 2015

YTD All Day Audience Share ¹

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%

YTD 2014 YTD 2015

YTD Prime Time Audience Share ¹

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 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.

+4.8

+0.1+0.3

-0.1-2.0 +0.6

+4.9+1.5

+0.0+1.2

-1.8+1.1

Net Revenues Trend by Quarter

7

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

OIBDA Margin Trend by Quarter

8

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%

@ actual rates

FY

(8)%

14%

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

9

100%

80%

60%

40%

20%

0%

10

Historically High Power Ratios

2013 All Day Audience Share andMarket Share

Audience shareMarket sharePower ratio

The power ratio indicates a company’s ability to convert ratings to revenue

Our strong content and leadership positions enable us to generate more revenues from TV advertising

= /

Bulgaria Croatia Czech Romania Slovak Slovenia Republic Republic

1.7x 2.0x 1.4x 2.4x 1.8x 2.0x

2014 All Day Audience Share andMarket Share

Bulgaria Croatia Czech Romania Slovak Slovenia Republic Republic

100%

80%

60%

40%

20%

0%

1.6x 2.0x 2.0x2.5x1.6x 2.2x

Sources: TNS and GARB (Bulgaria), AGB Nielsen Media Research (Croatia), ATO Nielsen Admosphere; Mediaresearch (Czech Republic), Kantar Media (Romania), PMT TNS (Slovak Republic) andAGB Nielsen Media Research (Slovenia) for audience share; CME estimates for market share.

9M 2015 All Day Audience Share andMarket Share

100%

80%

60%

40%

20%

0% Bulgaria Croatia Czech Romania Slovak Slovenia Republic Republic

2.1x2.1x1.5x 2.1x 1.6x 2.5x

Increasing Carriage Fees and Subscription Revenues

Increases in carriage fee revenues reflects the strong appeal of our channels.

▪ During 2014, carriage fees and subscription revenues represented 23% of total country net revenues in Bulgaria and 26% in

Romania.

11

2012 Total: US$ 43.4 2013 Total: US$ 59.0 2014 Total: US$ 80.5

Year ended 2012 - 201450

40

30

20

10

0

(US$

m)


8

1

11

20

13

16

2

11

25

14

20

2

8

46

14

12

Questions and Answers

6

4

2

0

-2

-4

(1)%

1%

2%

0%

(3)%

(2)%

(1)%

4%

1%1%

(1)%(1)%

2%

3%

2%2%

3%

0%

4%4%

3%

2%2%

1%

What are the macro-economic trends?

Czech Republic

Romania SlovakRepublic

Bulgaria Slovenia Croatia CME Average

13

Source: Eurostat. 2015 CME estimates based on market consensus Erste, JPM,Deutsche Bank, The Economist, Citi, OECD, IMF, Unicredit).

Source: CME internal estimates at constant currency exchange rates* Represents 9 months ended September 30, 2015.

Source: Eurostat, 2015 CME estimates based on market consensus Erste, JPM,Deutsche Bank, The Economist, Citi, OECD, IMF, Unicredit).

Note: Consensus analyst forecast and estimates are subject to change and comparative data maydiffer from those previously published. ** Romania market excludes Moldova.

20

15

10

5

0

-5

-10

-15

(5)%(6)%

(1)%

(7)%(7)%(10)% (10)%

(2)%

(9)%

1%

(7)%(4)%

6%5%4%

(3)%(6)%

4%7%

9%

17%

(2)%

4%1%

5

4

3

2

1

0

-1

-2

3%3%

4%

3%3%

4%

1%

4%

1%1%

2%2%

0%

1%

0%

(1)%

0%0%

1%

0%0%0%0%0%

2012 2013 2014 9M 2015*

2012 2013 2014 2015F

6

4

2

0

-2

-4

-6

(2)%

1%

(1)%

3%

(2)%(3)%

1%

3%

(1)%(1)%

(4)%

(1)%

2%

4%

2%3%

1%

(1)%

3%4%

2%2%1%

0%

2012 2013 2014 2015F

2012 2013 2014 2015F

Real GDPYear-over-Year Change Rate, % CME 2015F Average: 3.0%

Total TV Ad Market (nominal)Year-over Year Change Rate, % CME 9 months 2015 Average: 7.0%

Real Private Consumption Year-over-Year Change Rate, % CME 2015F Average: 2.6%

Consumer Price IndexAverage Year-over-Year Change Rate, % CME 2015F Average: 0.2%

Source: National Statistical Offices. 2015 CME estimates based on market consensusErste, JPM, Deutsche Bank, The Economist, Citi, OECD, IMF, Unicredit).

24%

31%

25%23%

31%29%

23% 23%35%

25%22%

41%

35% 34%

26%

38%

34% 34%

40%38%

35% 35% 36%

42%

Rose Garden Wife Swap Superstar Main News Clinic 2

Czech Republic

What are the leading programs in CME’s markets?

31% 31% 31% 32%35%

29%26%

30%

In the Middle Superstar The Farm Main News of Nowhere

Medcezir The Farm Capital Main News Hillibillies

54%

37%

24%

37%

55%

30%

21%

37%

Got Talent Restaurant is Taste of Love Main News Looking for Boss

41%

25%

34%31%

48%

29%26%

32%

Your Face The Farm No Matter What Main News Sounds Familiar*

2014 Q3 actual audience share for the same program or time slot. 2015 Q3 actual audience share for the program. * Q3 2014 represents results only for the first broadcast aired in Q4 2014. Data Source: Local TV data providers; All audience shares in main channels sales target group.

14

Romania Slovakia

CroatiaBulgaria Slovenia

Las Fierbinti* The Voice Masterchef Main News

What is your multichannel philosophy?

39 347

Main generalentertainmentTV channels

6 5 4

Otherthematic TVchannels

7

27

15

CZ RO SK BG SLO CRO

What is the leading advertising medium in your markets?

Split of advertising expenditure among different media in CME markets

Source: Group M, December 2014.

TV continues to have the broadest reach and capture the highest share of advertisingbudgets in our markets.

16

TV Internet Print Other

100%

80%

60%

40%

20%

0%2006 2007 2008 2009 2010 2011 2012 2013 2014

47% 49% 51% 49% 50% 52% 52% 52% 53%5%6%

7% 9% 10%11% 13% 15%

17%

32% 29% 25% 23% 22% 20% 19% 18% 16%

16% 16% 17% 19% 18% 17% 16% 15% 14%

There is significant room for convergence in our markets

What is the convergence potential of CME’s markets?

Source: IMF, Group M December 2014 and CME estimates.Developed markets are a combined group of 11 countries from within the European Union, predominantly in Western Europe, and the United States.

17

Czech Republic Slovenia Croatia Slovak Republic Bulgaria Romania CME average Developed markets average

$72.0 $51.9 $44.9 $41.5$25.1

$15.1$35.7

$342.0

Ad intensity is the ratio of total ad spend to GDP.

0.40% 0.22% 0.35% 0.23% 0.34% 0.15% 0.28%

0.73%

Ad intensity

US$

2014 Total ad spend per capita and ad intensity

500

400

300

200

100

0

How is television distributed in CME’s markets?

Multichannel penetration is increasing as new technologies develop

Households1Penetration 20142

DTT DTH Cable IPTV

Bulgaria 2.9 million 15% 35% 45% 3%

Croatia 1.5 million 56% 7% 13% 25%

CzechRepublic 4.3 million 51% 26% 21% 2%

Romania 7.2 million 4%³ 25% 70% -

SlovakRepublic

1.7 million 9% 48% 29% 14%

Slovenia 0.8 million 16% 4% 41% 39%

18

1 Sources: BeMedia (Bulgaria), Croatian Bureau of Statistics (Croatia), Mediaresearch (Czech Republic), OTVY (Romania), TNS (Slovak Republic) and OTVY (Slovenia).2 CME estimates for the penetration of the primary source of viewing of TV households for 2014 based on country data available. ³ Refers to analogue terrestrial since the transition to DTT is not complete.

19

Segment Review

50

45

40

35

30

40.838.1

20

Czech Republic: Q3 2015 performance

Q3 2015 Financials

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 leadership datais for the 15-54 target group). TV ad market share represents CME’s internal estimates.

-2.7

50

45

40

35

30

36.834.3

-2.5

Prima Group: 27%

CME Group: 60%

CT Group: 5%

Others: 8%

Q3 2014 Q3 2015

Prime Time Audience ShareAudience Share

All Day Audience Share

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

21

Romania: Q3 2015 performance

Q3 2015 Financials

+0.1

40

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 Urbantarget group). 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

22

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%

2014 2015 Q4 Q1 Q2 Q3

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.

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




23Q3

56%

61%

56%58% 57%

2014 2015 Q4 Q1 Q2 Q3


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.

40

35

30

25

20

32.1 32.8

24

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

50

45

40

35

30

41.5 42.3

25

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 for 18-54target group. TV ad market share represents CME’s internal estimates.

Other: 4%

Q3

73%

81%

76%78%

70%

2014 2015 Q4 Q1 Q2 Q3

Financial Review

26

Q3 Revenues by Segment

27

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.

US$ mNet Revenues

Q3 2014 Q3 2015Variance

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%

YTD Revenues by Segment

28



US$ mNet Revenues

Nine months ended September 30 Variance2014 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%

Q3 OIBDA by Segment

29



US$ mOIBDA

Q3 2014 Q3 2015

Variance

Actual % Lfl %1

Bulgaria 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 %

YTD OIBDA by Segment

30



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 %

Summary Consolidated Statements of Operations

31

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.

32

Consolidated Revenues by Type


US$ m Three months endedSeptember 30,

Nine months endedSeptember 30,

2014 2015 2014 2015

TV advertising revenues 104.9 93.9 380.1 337.1

Carriage fees & subscription revenues 20.2 17.7 61.2 54.9

Other revenues 5.9 5.7 23.4 18.3

Net revenues 131.1 117.3 464.6 410.3

US$ mAs at

December 31,2014

As atSeptember 30,

2015Current assets 345.0 321.5Assets held for sale 29.9 12.5Total current assets 374.9 334.0Non-current assets 1,244.5 1,142.9

Total assets 1,619.4 1,476.9Current liabilities 439.9 423.0

Liabilities held for sale 10.6 8.4

Non-current liabilities 667.7 706.4

Total 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 debt1 (1,066.0) (1,072.0)

Net debt (1,031.7) (1,010.2)

33

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 Consolidated Balance Sheet

Summary Cash Flow

34

US$ mNine months ended September 30,

2014 2015Net 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) 4.0

Impact 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) 79.1

Capex 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


Debt Maturity Profile and Free Cash Flow

35

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

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.

Indebtedness as at September 30, 2015

36

¹ Debt in currencies other than US$ are translated at FX rates as at September 30, 2015.² LC: local currency.3 Total debt includes 2015 Convertible Notes, 2017 PIK Notes, 2017 Term Loan and 2017 Fixed Rate Notes at full face value.4 On September 30, 2015, we entered into the 2019 Euro Term Loan, which we intend to draw in full and apply the proceeds toward the repayment and discharge of the 2015 Convertible Notes at maturity. Thereplacement facility will bear interest at 8.5% and CME will have the option to pay interest in kind.


As at September 30, 20151 Drawn Total facilityLC Interest

rate MaturityUS$ m US$ m LC2 m

Corporate:

2015 Convertible Notes 261.0 261.0 261.0 USD 5.0% 2015

2017 Euro Term Loan 281.0 281.0 250.8 EUR 8.5% 2017

2017 PIK Notes 467.4 467.4 467.4 USD 15.0% 2017

2017 Term Loan 35.5 35.5 35.5 USD 15.0% 2017

2017 Revolving Credit Facility _ 115.0 115.0 USD 10.0% 2017

Other credit facilities 3.1 3.1 12.2 RON Var. Var.

Total debt3 1,048.0

2017 Guarantee fee 15.6

Lease obligations 3.7

Currency and interest agreements 4.7

Total debt (consolidated)4 1,072.0

Less: Unrestricted cash (61.8)

Net debt (1,010.2)

Weighted average interest rate of gross debt 10.72%

37

Equity Structure and Outstanding Equity Instruments

As at October 23, 2015 Shares of Class ACommon Stock

Series A ConvertiblePreferred Share1

Series B ConvertibleRedeemable

Preferred Shares2

Ownership % ofShares of Class A

Common StockVoting interest3

Shares outstanding, excluding Time Warner 74,394,499 - - 54.8% 50.6%

Time Warner 61,407,775 1 200,000 45.2% 49.4%

Total 135,802,274 1 200,000 100% 100%

1 The single share of Series A Convertible Preferred Stock is convertible into 11,211,449 shares of Class A common stock.

2 The shares of Series B Convertible Redeemable Preferred Stock are non-voting perpetual stock, convertible after June 25, 2016 at the option of Time Warner at a conversion price of 2.42, subject to customary anti-dilutionprovisions, and redeemable after June 25, 2016 at the option of CME, subject to the conversion right of Time Warner. The accretion rate is 7.5% per annum for the first 3 years and 3.75% per annum for the 4th and 5th year.Assuming conversion three years from issuance and no further adjustments to the conversion price under the Certificate of Designation for the Series B Preferred Shares, TW Investor would be issued 103.2 million shares of Class Acommon stock upon conversion.

3 Voting interest takes into account both the shares of Class A common stock and the share of Series A Convertible Preferred Stock, which is entitled to one vote for each of the 11,211,449 shares of Class A common stock into whichit is convertible. The Series B Convertible Redeemable Preferred Shares are non-voting, except in certain circumstances.

As at September 30, 2015

Total Class A and equivalentsoutstanding²

Total Class A and equivalents held byTWX

Class A Common Shares 135,802,274 61,407,775Convertible instruments (As Converted Basis):

Series A Convertible Preferred Share 11,211,449 11,211,449

Series B Convertible Redeemable Preferred Shares¹ 97,665,809 97,665,809

Initial Warrant 30,000,000 30,000,000

Unit Warrants 84,000,000 70,926,996

Diluted CME Class A Shares 358,679,532 271,212,029TWX interest in CME 76%

¹ Based on the accreted value of 200,000 shares issued and outstanding at September 30, 2015 without giving effect to additional accretion after such date.² Excludes 2.6 million million unvested RSUs, 1.6 million stock options, 850,000 warrants with a strike price of $21.75 (expiring December 2015), and the 2015 Convertible Notes with a conversion price of $ 50.00 per share(maturing November 15, 2015).

OIBDA Reconciliation

38

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 66.61Other 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 of2014 and 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 excludedfrom 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 competitioncommittee in Slovenia was seeking to impose which was subsequently overturned in the fourth quarter of 2014.


OIBDA Reconciliation

39

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

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.


Paul T. Cappuccio

John K. Billock

Independent Director, Non-ExecutiveChairman of the Board and member of the

Compensation Committee

▪ Executive Vice President and GeneralCounsel, Time Warner Inc.

▪ Former partner at Kirkland & Ellis

Director

▪ Member of the Board of Advisors atSimulmedia, Inc.

▪ Former Director of TRA Inc. and TiVoResearch and Analytics, Inc.

▪ Previous roles with Time Warner Cableand Home Box Office

Charles R. Frank

Independent Director and member of theAudit Committee

Director

Independent Director, Chairman of the AuditCommittee and member of the Corporate

Governance/Nominating Committee

Independent Director, Chairman of theCompensation Committee and member of theCorporate Governance/Nominating Committee

Independent Director, Chairman of theCorporate Governance/Nominating Committee

and member of the Audit Committee

Director

Independent Director and member of the AuditCommittee and member of the Compensation

Committee

Director

▪ Financial advisor and non-executive boardmember of Mittal Steel Galati

▪ Former Vice President of the EuropeanBank for Reconstruction and Development

▪ Currently a Principal of the H.A.M Mediagroup, an international investment andadvisory firm specializing in theentertainment and communicationsindustries

▪ Non-executive director of Eircom

▪ Chairman of Merapar

▪ Former Chief Executive Officer ofUnitymedia

▪ EVP & Chief Strategy Officer, TurnerBroadcasting System, Inc.

▪ Former Senior Vice President, Internationaland Corporate Strategy at Time Warner Inc.

▪ Former senior analyst at Banc of AmericaSecurities

▪ EVP, Corporate Development and CFO atSESAC, INC., a music rights licensingcompany

▪ After period as COO, CFO she became aPresident of RSL Capital LLC and Founder andGeneral Partner of RSL Venture Partners L.P.

▪ Previous roles with Martha Stewart LivingOmnimedia, Inc. and Time Warner, Inc.

▪ President of Turner Broadcasting SystemInternational

▪ Former Chief Executive Officer of RTLGroup

▪ Former member of the executive board ofBertelsmann AG

Iris Knobloch

▪ President of Warner Bros. France S.A.

▪ Independent Director of Accor S.A.

▪ Former Senior Vice President ofInternational Relations of Time Warner Inc.

Alfred W. Langer

▪ Former CFO of Solvadis, a subsidiary ofthe German group MG Technologies

▪ Independent consultant in financial andorganizational areas

Bruce Maggin

Parm Sandhu

Doug Shapiro

Kelli Turner

Gerhard Zeiler40

CME Board of Directors

Contact Information

Prague Office

Kříženeckého nám. 1078/5152 00 Prague 5 – BarrandovCzech Republicwww.cme.net

Mark KobalHead of Investor Relations

Email: [email protected] Telephone: +420 242 465 576

41

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