q2 2014 investor presentations2.q4cdn.com/.../2014/cme_q2_2014_investor_presentation.pdf · 2015....

Q2 2014Investor Presentation

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKINGSTATEMENTS AND 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: our continuingsignificant liquidity constraints; the success of our efforts to increase our revenues and recapture advertising market share in the Czech Republic; decreases intelevision advertising spending and the rate of development of the advertising markets in the countries in which we operate; our ability to refinance our existingindebtedness; the effect of the global economic slowdown and Eurozone instability in our markets and the extent and timing of any recovery; our success inimplementing our initiatives to diversify and enhance our revenue streams; the extent to which our debt service obligations restrict our business; our ability tomake cost-effective investments in television broadcast operations, including investments in programming; our ability to develop and acquire necessaryprogramming and attract audiences; changes in the political and regulatory environments where we operate and application of relevant laws and regulations;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 Financial Review appendix for a reconciliation to the most directly comparable GAAP financial measures. OIBDA, which includes amortization andimpairment of program rights, is determined as operating income before depreciation, amortization of intangible assets and impairments of assets and certainunusual or infrequent items 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. $916m

CME markets

Source: IMF (2013)

3

Source: 2013 CME estimates

2013 Net TV ad market size by geography

Czech Republic $314m

Romania$193m

SlovakRepublic$125m

Croatia$99m

Bulgaria$112m

Slovenia$73m

4

• Improve advertising revenues, especially in the Czech Republic

• Diversify revenues by increasing carriage fees

• Continue to improve our operating leverage through additionalcost savings without jeopardizing our leading audience shares

• Sharpen our focus on broadcast operations in each country

Management's Operating Priorities

5

Q2 AUDIENCE PERFORMANCE OVERVIEW

Variance in percentage points

Q2 All Day Audience Share ¹

2013 2014

50%40%30%20%10%

0%

Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia

Q2 Prime Time Audience Share ¹

2013 2014

50%40%30%20%10%

0%


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

-0.8-1.4 -1.0 -0.0

-0.5-4.2

-0.9 -0.1 -2.6-0.6

-2.1-4.0

34.1% 33.3% 28.1% 26.7% 36.8% 35.8% 25.5% 25.5% 32.9% 32.4% 39.5% 35.3%

38.0% 37.1% 33.6% 33.5% 42.5% 39.9% 31.1% 30.5% 36.0% 33.9% 47.0% 43.0%

YTD AUDIENCE PERFORMANCE OVERVIEW

6Variance in percentage points

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

YTD All Day Audience Share ¹

2013 2014

50%40%30%20%10%

0%


YTD Prime Time Audience Share ¹

2014 2013

50%40%30%20%10%

0%


-0.2-0.9

+0.1+1.7

+0.3 -2.6

-0.4

+0.2

+0.0-0.7 -0.6-0.4 -0.1

-2.4

34.0% 33.8% 28.1% 27.2% 35.7% 35.8% 25.6% 25.8% 32.9% 33.2% 37.2% 34.6%

38.9% 38.5% 34.4% 33.7% 41.2% 40.6% 31.8% 31.4% 35.3% 35.2% 46.0% 43.6%

7

Historically High Power Ratios

2012 All Day Audience Share and Market Share 2013 All Day Audience Share and Market Share

AudienceshareMarket sharePower ratio

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

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

1.9x 2.0x1.6x 2.5x1.9x100%

80%

60%

40%

20%

0%

2.0x1.8x1.4x 2.4x2.0x1.7x

= /

Bulgaria Croatia Czech Romania Slovak Slovenia Republic Republic

Bulgaria Croatia Czech Romania Slovak Slovenia Republic Republic

1.9x100%

80%

60%

40%

20%

0%

Increasing Carriage Fees and Subscription Revenues

Increases in carriage fee revenues reflects the strength of our channels.

▪ We concluded key carriage fees deals in Bulgaria and Romania in 2013.

▪ Negotiations of carriage fees for our main channel in the Czech Republic did not advance to the extent we expected during 2013, and are

ongoing. We discontinued MTV Czech on December 31, 2013.

▪ Based on deals signed in Romania, we expect further improvement in carriage fees in 2014 compared to 2013.

8

Year ended 2012 and 2013

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

30

25

20

15

10

5

0

(US$

m)


8

1

11

20

13

16

2

11

25

1

4

YTD 2013 and 2014

2013Total: US$ 26.7 2014 Total: US$ 40.9

30

25

20

15

10

5

0

(US$

m)


7

1

6

10

1 2

10

1

4

23

1 2

9

Questions and Answers

What is the macro-economic backdrop?

Real GDPYear-over-Year Change Rate CME 2013 Average: 0.7%

Source: Eurostat

2011 2012 2013

Total TV Ad Market (nominal)Year-over Year Change Rate, % CME 2013 Average: -7%

2011 2012 2013Source: CME internal estimates at constant currency exchange rates

Real Private Consumtion Year-over-Year Change Rate, % CME 2013 Average: -0.1%

2011 2012 2013Source: Eurostat* Romania market excludes Moldova.

2011 2012 2013 2011 2012 2013

Consumer Price IndexAverage Year-over-Year Change Rate,% CME 2013 Average: 2.2%

Source National Statistical Offices.

Czech Republic

Romania SlovakRepublic

Bulgaria Slovenia Croatia

10

5

0

-5

-10

-15

4%

(6)%

1%

(4)%

5%

(2)%

(5)%(7)%

(1)%

(7)%(7)%

(10)% (10)%

(1)%

(9)%

(4)%

(7)%

(4)%

7

6

5

4

3

2

1

0

2%

6%

4% 4%

2% 2%

3% 3%

4%

3% 3%

4%

1%

4%

1% 1%

2% 2%

2011 2012 2013

2011 2012 2013 2011 2012 2013

CME Total

6

4

2

0

-2

-4

2% 2%3%

2%1%

0%

(1)%

1%2%

1%

(3)%(2)%

(1)%

4%

1% 1%

(1)%(1)%

6

4

2

0

-2

-4

-6

1% 1%

(1)%

2%1%

0

(2)%

1%0

4%

(5)%

(3)%

01%

0

(2)%(3)%

(1)%

10

2011 2012 2013

2011 2012 2013

What is your channel portfolio?

39 336

Main generalentertainmentTV channels

6 5 4

Otherthematic TVchannels

7

26

11

What are the leading local programs in CME countries?

12

37%

45%

24%

30%

41%39%

26% 25%23%

16%

43%

28%26%

19%

43%

32%

21%

33%

20%

31%32% 31%

23%25%

34%

39%

30% 30%26%

33%

27%

37%

21%

44%

22%

52%

23%

30% 29%

51%35%

26% 27% 28%27%

38%

33%

25%

The Street Rose Garden Village The Voice Medical Doctors

Las Fierbinti Worst Got Talent Masterchef Week

Blind Love Taste of Love Family The Voice Cases

The Family Capital Pay it Got Talent Hillbillies Forward

Mother's VIP Show Holly Molly Your Face Day Street Sounds Familiar

Dubrovnik's Crazy, Confused Masterchef Attested Dawn Normal

2013 Q2 Actual audience share for the same program or time slot. 2014 Q2 Actual audience share for the program. Data Source: Local TV data providers; All audience shares in main channels sales target group.

What is the leading advertising medium in your markets?

Split of advertising expenditure among different media in CME markets

Source: Group M, December 2013.

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

13

TV Internet Print Other

100%

80%

60%

40%

20%

0%

2006 2007 2008 2009 2010 2011 2012 2013

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

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

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

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

2013 Total ad spend per capita and ad intensity

500

400

300

200

100

0

There is significant room for convergence in our markets

What is the convergence potential of CME’s markets?

Source: IMF, Group M 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.

14

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

$67.1 $57.5 $45.4 $43.6$23.8

$14.5$34.6

$347

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

0.35% 0.25% 0.33% 0.24% 0.32% 0.15% 0.27%

0.77%

Ad intensity

US$

How is television distributed in CME’s markets?

1 Sources: National Statistical Institute (Bulgaria), ATO Mediaresearch (Czech Republic), Croatian Bureau of Statistics (Croatia), One TV Year in the World (Romania), Statistical Bureau of the Slovak Republic(Slovak Republic) and One TV Year in the World (Slovenia).2 CME estimates for the penetration of the primary source of viewing of TV households for 2012/ 2013 based on country data available. ³ Refers to analogue terrestrial since the transition to DTT is not complete.

Multichannel penetration is increasing as new technologies develop

Households1Penetration 20132

DTT DTH Cable IPTV

Bulgaria 2.9 million 18% 36% 44% 2%

Croatia 1.5 million 55% 9% 10% 26%

CzechRepublic 4.3 million 55% 29% 15% 1%

Romania 7.2 million 4%³ 25% 71% -

SlovakRepublic

1.7 million 10% 46% 34% 10%

Slovenia 0.7 million 16% 4% 41% 39%

15

16

Segment Review

Q2

44%

51%53%

57%58%

45

40

35

30

42.5

39.9

17

Czech Republic: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹

TV advertising revenues 37.3 54.0 44.8 % 46.1 %

Carriage fee & subscriptionrevenues 2.7 2.0 (26.7)% (26.0)%

Other revenues 2.7 3.3 22.0 % 22.8 %

Net revenues 42.7 59.3 38.8 % 40.0 %

Total costs 41.8 38.6 (7.7)% (6.8)%

OIBDA 0.9 20.7 NM² NM²

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: ATO-Media research (all audience share and leadership data is for the 15-54 targetgroup). TV ad market share represents CME’s internal estimates.

-2.645

40

35

30

36.835.8

-1.0

2013 2014

Prima Group: 29%

CME Group: 58%

CT Group: 5%

Others: 8%

Q2 2013 Q2 2014

Prime Time Audience Share

Audience ShareAll Day Audience Share

Market Share TV Ad Market Share (CME Group) Q2 2014 TV Ad Market Share

Market Share

Q3 Q4 Q1 Q2

35

30

25

20

31.1 30.5

18

Romania: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹

TV advertising revenues 31.9 34.7 8.7% 4.0%

Carriage fee & subscriptionrevenues 5.3 12.3 132.2% 122.0%

Other revenues 14.8 15.9 6.9% 2.1%

Net revenues 52.0 62.9 20.8% 15.5%

Total costs 43.9 50.3 14.4% 9.4%

OIBDA 8.1 12.6 55.6% 48.9%

-0.630

28

26

24

22

20

25.5 25.5

+0.0

Q2

60% 61% 60% 61% 61%

2013 2014

Intact Group: 23%

CME Group: 61%

Prima Group : 4%

Others: 5%

Q2 2013 Q2 2014



TV Ad Market Share (CME Group) Q2 2014 TV Ad Market Share

Market Share

Kanal D: 7%

Q3 Q4 Q1 Q2

¹ Like for-Like currency variance reflects the impact of applying the current period averageexchange rates to the prior period revenues and costs.

Source: Kantar Media (all audience share and leadership data is for the 18-49 Urban targetgroup). TV ad market share represents CME’s internal estimates.

38

36

34

32

30

36.0

33.9

19

Slovak Republic: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹



Other revenues 1.0 1.6 54.4 % 46.1 %

Net revenues 22.0 24.2 10.1 % 4.2 %

Total costs 22.6 21.1 (6.2)% (11.2)%

OIBDA (0.6) 3.1 NM2 NM2

-2.138

36

34

32

30

32.932.4

-0.5

Q2

63%

60%

65%

69%

67%

2013 2014

STV Group: 3%

CME Group: 67%

JOJ Group: 30%

Q2 2013 Q2 2014




Market Share

Q3 Q4 Q1 Q2

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 not meaningful.

Source: PMT / TNS SK (all audience share and leadership data is for the 12-54 target group).TV ad market share represents CME’s internal estimates.

CME Group: 56%

45

40

35

30

38.037.1

Bulgaria: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹

TV advertising revenues 19.0 17.3 (8.6)% (13.5)%

Carriage fee & subscriptionrevenues 3.9 5.1 28.5 % 21.8 %

Other revenues 1.4 1.5 12.4 % 6.8 %

Net revenues 24.2 23.9 (1.4)% (6.6)%

Total costs 20.3 18.3 (10.0)% (14.8)%

OIBDA 3.9 5.6 43.3 % 35.4 %

-0.945

40

35

30

34.1 33.3

-0.8

Q2

58%

60%61%

54%

56%

2013 2014

Others: 5%BNT Group: 4%

MTG Group: 35%

Q2 2013 Q2 2014




Market Share

Q3 Q4 Q1 Q2

¹ Like for-Like currency variance reflects the impact of applying the current period averageexchange rates to the prior period revenues and costs.² Not meaningful.

Source: GARB (all audience share and leadership data is for the 18-49 target group).TV ad market share represents CME’s internal estimates. 20

50

45

40

35

30

47.0

43.0

21

Slovenia: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹

TV advertising revenues 16.3 15.3 (6.6)% (11.5)%


Other revenues 1.4 1.4 (0.1)% (5.3)%

Net revenues 18.7 17.6 (6.1)% (11.0)%

Total costs 14.5 14.9 2.8 % (2.6)%

OIBDA 4.2 2.7 (36.5)% (39.9)%

-4.050

45

40

35

30

39.5

35.3

-4.2

Q2

77%

74%

81%

79%

76%

2013 2014CME Group: 76%

Q2 2013 Q2 2014




Market Share

Q3 Q4 Q1 Q2

Pink SI: 1%State TV Group: 16%

Planet TV Group: 5%


Source: AGB Nielsen Media Research (all audience share and leadership data is for 18-45target group. TV ad market share represents CME’s internal estimates.

Other: 2%

37

35

33

31

29

27

25

33.6 33.5

22

Croatia: Q2 2014 performance

Q2 2014 Financials

US$ m Q22013

Q22014 % Act % Lfl¹


Carriage fee & subscriptionrevenues 0.4 0.5 23.8 % 18.2 %

Other revenues 1.8 1.0 (46.2)% (48.7)%

Net revenues 17.8 19.5 9.4 % 4.3 %

Total costs 13.6 14.6 7.3 % 2.3 %

OIBDA 4.2 4.9 16.3 % 10.7 %

-0.137

35

33

31

29

27

25

28.126.7

-1.4

Q2

53%

57%

56% 56%

53%

2013 2014

HTV Group: 10%

CME Group: 53%

RTL Group: 37%

Q2 2013 Q2 2014

Audience Share


Market Share

All Day Audience Share Prime Time Audience Share

Q3 Q4 Q1 Q2


Source: AGB Nielsen Media Research (all audience share and leadership data is for the 18-54target group). TV ad market share represents CME’s internal estimates.

23

Financial Review

Q2 REVENUES BY SEGMENT

24

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 June 30, 2014.

US$ mNet Revenues

Q2 2013 Q2 2014Variance

Actual % Lfl %1

Bulgaria 24.2 23.9 (1.4)% (6.6)%

Croatia 17.8 19.5 9.4 % 4.3 %

Czech Republic 42.7 59.3 38.8 % 40.0 %

Romania 52.0 62.9 20.8 % 15.5 %

Slovak Republic 22.0 24.2 10.1 % 4.2 %

Slovenia 18.7 17.6 (6.1)% (11.0)%

Intersegment revenues (2.0) (2.5) NM2 NM2

Total net revenues 175.6 204.9 16.7 % 12.6 %

FIRST HALF REVENUES BY SEGMENT

25



US$ mNet Revenues

H1 2013 H1 2014

Variance

Actual % Lfl %1Bulgaria 40.7 43.2 6.2 % 1.1 %

Croatia 29.9 33.0 10.3 % 5.8 %

Czech Republic 74.8 98.3 31.4 % 33.7 %

Romania 92.0 110.7 20.3 % 16.3 %

Slovak Republic 38.9 42.4 8.8 % 3.8 %

Slovenia 33.2 31.8 (4.1)% (8.5)%

Intersegment revenues (3.3) (3.3) NM2 NM2

Total net revenues 306.2 356.1 16.3 % 13.1 %

Q2 OIBDA BY SEGMENT

26



Costs charged in arriving at OIBDA for the three and six months ended June 30, 2014 exclude a fine the competition agency in Slovenia is seeking to impose which was accrued in the second quarterof 2014 (see our Form 10-Q for the period ended June 30, 2014, Item 1, Note 20, "Commitments and Contingencies").

US$ mOIBDA

Q2 2013 Q2 2014Variance

Actual % Lfl %1

Bulgaria 3.9 5.6 43.3 % 35.4 %

Croatia 4.2 4.9 16.3 % 10.7 %

Czech Republic 0.9 20.7 NM2 NM2

Romania 8.1 12.6 55.6 % 48.9 %

Slovak Republic (0.6) 3.1 NM2 NM2

Slovenia 4.2 2.7 (36.5)% (39.9)%

Eliminations 0.4 (0.1) NM2 NM2

Operations sub-total 21.2 49.4 133.3 % 120.1 %

Central costs (13.2) (7.8) 40.7 % 41.5 %

Total 8.0 41.6 NM2 NM2

FIRST HALF OIBDA BY SEGMENT

27



Costs charged in arriving at OIBDA for the three and six months ended June 30, 2014 exclude a fine the competition agency in Slovenia is seeking to impose which was accrued in the secondquarter of 2014 (see our Form 10-Q for the period ended June 30, 2014, Item 1, Note 20, "Commitments and Contingencies").

US$ mOIBDA

H1 2013 H1 2014Variance

Actual % Lfl %1Bulgaria 1.5 2.9 92.0 % 68.6 %

Croatia 3.6 5.5 54.9 % 46.1 %

Czech Republic (6.0) 23.4 NM2 NM2

Romania 9.2 18.0 96.1 % 86.2 %

Slovak Republic (4.1) (0.1) 97.5 % 97.6 %

Slovenia 6.1 3.2 (47.2)% (50.1)%

Eliminations 0.4 0.3 NM2 NM2

Operations sub-total 10.7 53.2 NM2 NM2

Central costs (23.4) (13.9) 40.4 % 40.8 %

Total (12.8) 39.3 NM2 NM2

Summary Consolidated Statements of Operations

28

US$ m (except per share data)Three months ended

June 30,Six months ended

June 30,2013 2014 2013 2014

Net revenues 175.6 204.9 306.2 356.1Content costs 96.7 93.9 185.9 182.9Other operating costs 32.0 29.7 61.8 56.8Depreciation and amortization 12.6 12.1 26.7 24.1Selling, general and administrative costs 34.2 43.7 66.6 75.8Restructuring costs 4.7 2.9 4.7 8.3Operating (loss) / income (4.6) 22.6 (39.5) 8.3Net interest expense (31.0) (38.9) (62.8) (66.7)

Loss on extinguishment of debt (23.1) (24.2) (23.1) (24.2)Foreign currency gain / (loss), net 15.0 0.0 (34.8) (0.4)Change in FV of derivatives 0.0 2.4 0.1 2.3Other expense (0.4) (1.8) (0.4) (1.8)Income tax credit / (provision) 3.3 (2.5) 11.3 (0.3)Discontinued operations, net (0.4) (10.1) (0.9) (18.4)Net loss (41.1) (52.5) (150.1) (101.1)Net loss attributable to noncontrolling interests 0.1 0.1 0.8 0.8Net loss attributable to CME Ltd. (41.0) (52.4) (149.2) (100.4)

Net loss per share (0.34) (0.36) (1.42) (0.69)Please refer to our Form 10-Q for the period ended June 30, 2014 for the full financial statements and related notes and disclosures.

29

Consolidated Revenues by Type

Please refer to our Form 10-Q for the period ended June 30, 2014 for the full financial statements and related notes and disclosures.

US$ m Three months ended June 30, Six months ended June 30,

2013 2014 2013 2014

TV advertising revenues 140.8 161.6 243.1 275.0

Carriage fees & subscription revenues 13.6 21.1 26.7 40.9

Other revenues 21.2 22.2 36.4 40.2

Net revenues 175.6 204.9 306.2 356.1

US$ mAs at

December 31,2013

As atJune 30,

2014Current assets 454.8 456.0

Non-current assets 1,507.1 1,505.1

Total assets 1,961.9 1,961.1

Current liabilities 316.2 309.2

Non-current liabilities 996.8 871.0

Total liabilities 1,313.0 1,180.2

Series B Convertible Redeemable Preferred Stock 207.9 215.7

CME Ltd. shareholders' equity 440.1 565.1

Noncontrolling interests 0.9 0.2

Total liabilities and equity 1,961.9 1,961.1

Cash & cash equivalents 103.6 87.8

Gross debt1 (977.2) (1,027.7)

Net debt (873.6) (939.9)

30

¹ Gross debt is the full face value of all outstanding debt. Please refer to our Form 10-Q for the period ended June 30, 2014 for the full financial statements and related notes and disclosures.

SUMMARY CONSOLIDATED BALANCE SHEET

SUMMARY CASH FLOW

31

US$ mSix months ended June 30,

2013 2014Net cash used in continuing operating activities (37.3) (16.9)

Net cash used in continuing investing activities (14.5) (14.1)

Net cash provided by continuing financing activities 61.5 15.9

Net cash generated from discontinued operations (1.0) (0.8)

Impact of exchange rate fluctuations (3.5) 0.0

Net increase / (decrease) in cash and cash equivalents 5.2 (15.8)Net cash used in continuing operating activities (37.3) (16.9)

Capex additions, net of disposals (14.5) (14.1)

Free cash flow (51.8) (31.0)Supplemental disclosure of cash flow information:Accretion on Series B Convertible Redeemable Preferred Stock 0.2 7.8

Interest paid in-kind 0.0 0.7


1,000

800

600

400

200

02014 2015 2016 2017

759

DEBT MATURITY PROFILE AND FREE CASH FLOW

32

Components of free cash flow (US$ m)

Six months ended June 30,Variance

2013 2014OIBDA (13) 39 52

Change in working capital 31 (3) (34)

Interest, taxes, and other (68) (54) 14

Net investment in programming 13 1 (12)

Capex (15) (14) 1

Total (52) (31) 21

2015 Convertible Notes 2017 Fixed Rate Notes RCFTerm Loan 2017 PIK Notes

261

Maturity profile as at June 30, 2014

115¹

31²

400³

328

1 Undrawn at June 30, 2014. ² Includes PIK interest to June 30, 2014. ³ Excludes PIK interest to June 30, 2014.

Indebtedness as at June 30, 2014

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¹ Debt in currencies other than US$ are translated at FX rates as at June 30, 2014² LC: local currency.³ The RCF bears interest at the greater of 15% or LIBOR +14%. 4 Total debt includes 2015 Convertible Notes, 2017 PIK Notes, 2017 Term Loan and 2017 Fixed Rate Notes at full face value.


As at June 30, 20141 Drawn Total facilityLC Interest

rate MaturityUS$ m US$ m LC2 m

Corporate:

2015 Convertible Notes 261.0 261.0 261.0 USD 5.00% 2015

2017 PIK Notes 400.0 400.0 400.0 USD 15.0% 2017

2017 Term Loan 30.7 30.7 30.0 USD 15.0% 2017

2017 Revolving Credit Facility 0.0 115.0 115.0 USD floating³ 2017

Station level:

Czech Republic – 2017 Fixed Rate Notes 327.8 327.8 240.0 EUR 9.00% 2017

Other 4.3 4.3

Lease obligations 3.9

Total debt (consolidated)4 1,027.7

Less: Unrestricted cash (87.8)

Net debt 939.9

Weighted average interest rate of gross debt 10.47%

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Equity structure as at July 25, 2014

Shares ofClass A

CommonStock

Series AConvertiblePreferred

Share1

Series BConvertibleRedeemable

PreferredShares2

Ownership %of Shares of

Class ACommon

Stock

Votinginterest3

Shares outstanding, excluding TimeWarner

73,898,322 - 54.6% 50.4%

Time Warner 61,407,775 1 200,000 45.4% 49.6%

Total 135,306,097 1 200,000 100.0% 100.0%

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 tocustomary anti-dilution provisions, and redeemable after three years at the option of CME, subject to the conversion right of Time Warner. The accretion rate is 7.5% per annum for first 3 years and3.75% 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 BPreferred Shares, TW Investor would be issued 103.2 million shares of Class A common 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 ofClass A common stock into which it is convertible. The Series B Convertible Redeemable Preferred Shares are non-voting, except in certain circumstances.

Dilutive Instruments and Economic Interest

Summary March 31, 2014 Changes due toTransactions³

Other Q2activity June 30, 2014

InstrumentsClass A Common Shares 135,126,867 162,522 135,289,389Series A Convertible Preferred 11,211,449 11,211,449Series B Convertible Preferred¹ 66,951,581 20,404,790 1,611,198 88,967,569Initial Warrant 30,000,000 30,000,000Unit Warrants 84,000,000 84,000,000Diluted CME Shares² 213,289,897 134,404,790 1,773,720 349,468,407

TWX Shares in CME (As Converted Basis)Class A Common Shares 61,407,775 61,407,775Series A Convertible Preferred 11,211,449 11,211,449Series B Convertible Preferred¹ 66,951,581 20,404,790 1,611,198 88,967,569Initial Warrants 30,000,000 30,000,000Unit Warrants 70,926,996 70,926,996Total TWX Shares in CME 139,570,805 121,331,786 1,611,198 262,513,789

TWX interest in CME² 65% 75%

¹ Based on the accreted value as of March 31, 2014 or June 30, 2014 (without giving effect to additional accretion of the Series B Preferred Stock after such date).² Excluding 1.6 million unvested RSUs, 0.2 million out-of-the money stock options, and 850,000 warrants with a strike price of $21.75.³ Reflects adjustment under the anti-dilution provisions in Series B Convertible Redeemable Preferred Stock held by Time Warner following the issuance of the warrants.

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OIBDA RECONCILIATION

36

(1) Other items for the three and six months ended June 30, 2014 is comprised of a fine the competition agency in Slovenia is seeking to impose.


US$ m Three monthsended June 30,

Six months endedJune 30,

2013 2014 2013 2014Reconciliation to Consolidated Statements of Operations:

Operating (loss) / income (4.6) 22.6 (39.5) 8.3

Depreciation of property, plant and equipment 8.9 8.9 19.1 17.6

Amortization of intangible assets 3.6 3.2 7.6 6.5

Other items (1) — 6.9 — 6.9

OIBDA 8.0 41.6 (12.8) 39.3

Contact information

Prague Office

Kříženeckého nám. 1078/5152 00 Prague 5 – BarrandovCzech Republic

Mark KobalHead of Investor Relations

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

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