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$Page 1: Fox Kids Europe N.V. - Homepage ::: Jetix 23:04 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Slide 4 Disney Integration process accelerated Disney Consumer Products now representing$
12/10/03 23:0412/10/03 23:04 yeled\Research Analyst Presentation\Fox Kids YNON.pptyeled\Research Analyst Presentation\Fox Kids YNON.ppt

Slide Slide 11

Fox Kids Europe N.V.FY03 Financial Results

December 11, 2003

TM


Slide Slide 22

Operating Review

Bruce SteinbergChairman & CEO


Slide Slide 33

Integration process with Disney accelerated

Subscribers up by 2.5 mil to 34.8 mil. Branded blocks reach anadditional 70 million homes

New programme distribution output deals concluded orextended

Library expanded with acquisition of 205 new episodes

Strong return to profitability

Solid financial position

FY 03 Operating Highlights


Slide Slide 44

DisneyIntegration process accelerated

Disney Consumer Products now representing PowerRangers

Distribution agreement concluded with Buena Vista HomeEntertainment for DVD and video

Increasing Disney advertising spend with FKE First co-production with Disney for a new series on the hit

publishing property W.I.T.C.H. Complementary nature of channels allows for further

synergies


Slide Slide 55

Fox Kids and DisneyFox Kids and DisneyChannels are complementary in Europe

Premium channel Not supported by advertising Programming focus on

children/families

Basic channel Advertising supported Programming focus on

boys/action


Slide Slide 66


Slide Slide 77

Subscribers up by 2.5 million y-o-y to 34.8 million

Key distribution agreements extended (Denmark, Turkey and TheMiddle East)

New morning branded block launched and afternoon blockextended in Italy

Channel hours extended in France, The Netherlands and Poland

Fox Kids Play successfully relaunched in the UK with Telewest

Registered users on Fox Kids websites up by 32% to 1.6 million

Channels & OnlineCore business performs strongly

Now broadcasting Now broadcasting in 57 countries in 17 languages via 13 channel feeds in 57 countries in 17 languages via 13 channel feeds


Slide Slide 88

12.5

20.6

26.0

34.8

0

5

10

15

20

25

30

35

40

45

50

Disney * Nickelodeon Cartoon Network Fox Kids

TV H

ouse

hold

s (M

illio

n)

Source: Market research and FKE estimates*Available as a premium channel

Sept 30, 2003

Market PositioningEurope & Middle East


Slide Slide 99

3.5 4.37.7

10.413.76.4

12.2

14.3

17.7

6.1

16.39.0

18.5

0

5

10

15

20

25

30

35

40

1997 1998 1999 2000 2001 2002* 2003

CableDTH

As of May 31

3.5

10.7

15.1

19.9

MillionHH’s

**CAGR = 44%

Channel Growth ContinuesIncreasing in both cable and DTH

24.7

*As of June 30 as of September 30 ** CAGR is calculated on 6.33 years

31.4

34.8

+

+


Slide Slide 1010

8.7

5.4

2.0

1.4

0.6

7.9

6.5

2.4

1.9

1.8

2.4

0.8

1.2

6.8

2.6

1.8

1.6

1.7

0.3

1.9

4.6

0.2

1.7

0.9

0.0 2.0 4.0 6.0 8.0 10.0

UK & Ireland

Netherlands

CEE

France

Poland

Scandinavia

Spain

Germany

Italy

Hung/Czech/Slov

Israel

Greece

Sep-02Sep-03

Fox Kids Channel ReachItaly leads the growth

Local channel in every major marketMillion HH’s


Slide Slide 1111

Programme Distribution


Slide Slide 1212

205 new episodes added

New 3-year output deal concluded with Super RTL in Germany including 2 co-productions

Output deal extended with Antena 3 in Spain

Power Rangers ranked number one in all countries in which it aired in its timeslot

Continue to capitalise on the new Marvel feature films:

Focus on reducing programming expenditure per series


Growth expected to resume in FY05

Spiderman 2, Fantastic FourSpiderman 2, Fantastic Four20042004

Silver Surfer, Iron ManSilver Surfer, Iron Man20052005

X-Men 2, The HulkX-Men 2, The Hulk20032003

TitleTitleRelease YearRelease Year


Slide Slide 1313

Growing Programme Library

205 new episodes added

Titles delivered include: Gadget and the Gadgetinis RoboRoach Pig City Quintuplets Power Rangers Ninja Storm

180 episodes in progress as at September 30, 2003 Titles in progress include:

Sonic X Shaman King Tofu Family RoboRoach 2 What’s with Andy 2


Slide Slide 1414


Slide Slide 1515

Consumer ProductsIdentifying new ways to improve profitability

3-year agency agreement concluded with Disney Consumer Productsto represent Power Rangers

Substantial improvement in home entertainment activity; 60% increasein units shipped

3-year distribution agreement concluded with Buena Vista HomeEntertainment covering Power Rangers, Marvel and Disney fundedproperties for DVD and video

Channel network leveraged to generate new revenue streams such asthe band Ch!Ch!pzpz

Agency licensing rights to PUCCA™ secured for all territories inEurope and the Middle East

German operations restructured to increase efficiency


Slide Slide 1616

Martin WeigoldChief Financial Officer

Financial ReviewFinancial Review


Slide Slide 1717

Fiscal Period

Fiscal period end (FPE) prior to IPO was May 31

FPE changed immediately following IPO to June 30 to be coterminouswith parent company (then FFWW) for FY01; 13 mths fiscal period

FPE changed again in FY02 to September 30 following Disney’sacquisition of FFWW, in order to be coterminous with Disney’s FPE; 15mths fiscal period

In order to allow comparability, first 12 months of extended fiscalperiod released to the market as well

Accordingly, to be consistent with prior year disclosures comparative12 month period is June 30, 2002


Slide Slide 1818

Prior Year Fiscal Periods Compared

12 months endedSept 30, 2002

12 months ended12 months endedSept 30, 2002Sept 30, 2002 (US$mil)

129.3 (76.0) 53.3 (2.2) (85.2) (34.1) 1.4 (32.7)

124.1 (77.7) 46.4 (2.6) (80.8) (37.0) 1.0 (36.0)

12 months endedJune 30, 2002

12 months ended12 months endedJune 30, 2002June 30, 2002

Net Revenues

Costs and ExpensesEBITDADepreciationProgramme Amortisation

Operating LossOther Financial ItemsLoss Before Tax


Slide Slide 1919

Financial HighlightsSubstantial progress on all key indicators

Total Revenues

EBITDA

Income Before Tax

EPS (cents)1

Operational Cash Flow

FY 03FY 03FY 03 FY 02*FY 02*FY 02* (US$mil) Change*

133.0

53.3

(32.7)

(35.0)

8.9

152.0

56.0

5.6

4.6

10.4

14%

5%

117%

113%

17%

1 Before cumulative effect of change in accounting principle

* Unless otherwise stated all comparisons are for the 12 months ended September 30, 2003 versus the 12 months ended June 30, 2002


Slide Slide 2020

Subscription and Other 52%


21%

Total revenues for the year ended September 30, 2003: $152.0 milTotal revenues for the year ended September 30, 2003: $152.0 mil

ME 6%

CEE 8%

Germany 7%

Channels& Online

72%

CountryCountryCountryLine of BusinessLine of BusinessLine of Business

Nordic Region 4%

Poland4%

Benelux 10%

Spain & Portugal 8%

ConsumerProducts

7%

Americas6%

Italy 10%Advertising

20%

Revenue ContributionRevenue ContributionBreakdown by LOB and geographic segmentBreakdown by LOB and geographic segment

France11%

UK26%


Slide Slide 2121

Channels & OnlineCore business profitability continues to grow

OverviewOverviewOverviewFinancial Performance ($mil)Financial Performance ($mil)Financial Performance ($mil)

Revenues up 31% to $109.4 mil

Advertising revenues up 36%;now represents 28% of channelrevenues

Reported EBITDA marginsdiluted by integration of online

EBITDA margin of 40%* stillwithin target range

Revenues EBITDA

31%

45%

59.2

83.6

109.4

28.4

41.2

5.6

41%

407%

FY 02FY 03

FY 01

*Calculated on net revenues


Slide Slide 2222

Channel & Online Revenues

Advertising Revenues($mil)

Advertising RevenuesAdvertising Revenues($mil)($mil)

SubscriptionRevenues ($mil)

SubscriptionSubscriptionRevenues ($mil)Revenues ($mil)

Total channel & online revenues: $ 109.4 milTotal channel & online revenues: $ 109.4 mil

36%

58.922.3

30.3

Other Revenues($mil)

Other RevenuesOther Revenues($mil)($mil)

FY 03FY 02

75.2

28% 3.9

2.4

63%

15.4

0.5

43.3 45%

36%

300%

FY 01


Slide Slide 2323

59.0

49.2

28.8

20.4

40.1

31.4

Revenues EBITDA

Ongoing improvement in programmequality and quantity expected

Benefits will be seen in FY05 andonwards

Expect approx. 250 episodes to bedelivered next year

Revenues better than our forecast, assome episodes delivered ahead ofschedule

Reductions in overhead mainly offsetby increased participation expensesin second half of the year

OverviewOverviewOverviewFinancial Performance ($mil)Financial Performance ($mil)Financial Performance ($mil)

(22%)

(29%)

Programme DistributionRecovery expected in FY05

(32%) (41%)

FY 02FY 03

FY 01


Slide Slide 2424

OverviewOverviewOverviewFinancial Peformance ($mil)Financial Financial PeformancePeformance ($mil) ($mil)

8.5

4.6

9.3

4.4

11.3

4.0

Revenues EBITDA

Revenues up 21% to $11.3 mil

Power Rangers particularly strongwith revenues up by 65%

$3 mil increase in homeentertainment revenues

EBITDA down from $4.4 milto $4.0 mil

German operations restructured: Improved efficiency $0.25 mil adverse impact

(4%)

21%

Consumer Products

FY 02FY 03

FY 01

9%

(9%)


Slide Slide 2525

(US$mil) FY 02FY 02FY 02FY 03FY 03FY 03

Net income/(loss)Non-cash itemsProgramming

Working capitalOPERATING CASH FLOWOPERATING CASH FLOWDividends and loans repaid by affiliatesAcquisition of FKICapexCash flow pre FX

3.850.1

(44.1) 9.8 0.610.410.4 2.3

(20.8) (1.2) (9.3)

(44.0) 96.7

(47.9) 4.8 4.1

8.9 8.9 0.1

- (1.3) 7.7

Cash Flow17% improvement in operating cash flow

+17%+17%


Slide Slide 2626

(9.9)

(15.6)

8.910.4

-20

-15

-10

-5

0

5

10

FY00 FY01

FY02 FY03

Operating Cashflow

$mil


Slide Slide 2727

No 1 childrens Pan-European channel network

One of the largest children’s programme libraries in the world

Programme distribution to fall further in FY04 beforereturning to growth in FY05

Free cash flow positive

Strong balance sheet; $51.5 mil net cash balances

Support from Disney, the world’s leading provider of familyentertainment

SummarySummaryFox Kids Europe well positioned for future growthFox Kids Europe well positioned for future growth


Slide Slide 2828

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