Report · January 1, 2008

MTG Corporate Responsibility Report 2008

Summary

Modern Times Group’s Modern Responsibility programme, launched in 2004, is presented as a strategic framework for leveraging entertainment to create social and environmental value across the company’s global operations. The initiative is positioned as core to MTG’s mission to “maximise the power of entertainment,” with responsibility articulated through five measurable pillars: community, environment, colleagues, broadcasting standards, and marketing. In 2008 the group reached 125 million viewers in 30 countries, operating 70 brands across television, radio, online retail and production. Financial performance showed net sales rising to SEK 13.2 billion and operating income to SEK 2.6 billion, while basic earnings per share more than doubled to SEK 43.25. Employee data indicate an average workforce of 2 810, with 35 % female representation, a 22 % turnover rate and 461 training days delivered to 46 % of staff. Community engagement generated 78 million SEK of donated airtime and raised 56 million SEK for charities, while environmental actions reduced office energy use by 28 % relative to national standards and produced a total carbon footprint of 4 223 tonnes CO₂ (3.0 t per employee), calculated under the Greenhouse Gas Protocol with external verification. Stakeholder governance is overseen by senior management, a dedicated coordinator and a Modern Responsibility Committee, supported by local ambassadors in each market. Reporting draws on internal data, carbon accounting from Tricorona Climate Partner, and regular stakeholder feedback through surveys and focus groups. The 2008 snapshot underscores MTG’s expanding footprint, its commitment to ethical broadcasting, and its ambition to deepen responsibility reporting in subsequent years.

From the report

Modern Times Group MTG AB Modern Responsibility Report 2008 MTG MODERN TIMES GROUP MTG Modern Responsibility Report 2008 A word from the President Modern Responsibility is about maximising the power of entertainment for the benefit of society and the communities in the countries in which we operate. This can be achieved by setting a good example ourselves, by raising awareness of important social and environmental issues, and by encouraging the public to take action. In this way, the media channels can be used to spread information and effect change. Modern Responsibility reflects what we believe in and is at the very core of our business. For us, sustainable and responsible business is successful President & Chief Executive business. By recognising our responsibility and Hans-Holger Albrecht acting accordingly, we not only support the surrounding communities but also improve and develop MTG. The Modern Responsibility programme was introduced in 2004 and we have reported on its development in each of our Annual Reports since. But this more comprehensive 2008 Modern Responsibility Report is the first of its kind that we have produced. You can also find a section about Modern Responsibility on our corporate web site at www.mtg.se. It is our intention to increase the level of reporting and information about the programme in the years to come. There is a lot going on – from small initiatives to larger scale projects, all of which share the aim to move beyond obligations and invest in our human resources, good business practices, the environment and the relationships with all of our stakeholders.

bout the programme in the years to come. There is a lot going on – from small initiatives to larger scale projects, all of which share the aim to move beyond obligations and invest in our human resources, good business practices, the environment and the relationships with all of our stakeholders. We have taken a number of important steps over the past year to enhance our environmental work – we have installed video conferencing equipment that has enabled us to further reduce business travel, we have started measuring and acting to reduce our carbon footprint, and our radio platform is the first anywhere in the world to apply for environmental management certification. We have also continued to support causes such as mental health and hospitalised children by donating TV and radio airtime. We are continuously increasing our footprint and attracting new viewers, listeners and customers. This brings many opportunities for new social and environmental initiatives and also increases the level of responsibility to maximise entertainment’s power for good.

Modern Times Group MTG AB Modern Responsibility Report 2008 Who we are MTG is a leading international entertainment broadcasting group and is present in more countries than any other European broadcaster. MTG’s TV channels are broadcast in 30 countries and attract 125 million viewers. MTG’s Viasat Broadcasting is the largest free-TV and satellite premium pay-TV operator in Scandinavia and the Baltics, and also operates free-TV channels in Bulgaria, the Czech Republic, Ghana, Hungary, Macedonia and Slovenia, as well as pay-TV channels throughout Central & Eastern Europe and in the United States and a satellite pay-TV platform in Ukraine. MTG is also the number one commercial radio operator in the Nordic and Baltic regions, as well as the largest shareholder in Russia’s leading independent television broadcaster – CTC Media (Nasdaq: CTCM). Modern Times Group MTG AB class A and B shares are listed on the Nasdaq OMX Stockholm exchange under the symbols ‘MTGA’ and ‘MTGB’. MTG’s mission is to ‘Maximise the Power of Entertainment’ MTG has four business areas: • Viasat Broadcasting is the largest business area within the Group and comprises the Free-TV Scandinavia, Pay-TV Nordic, Free-TV Emerging Markets and Pay-TV Emerging Markets businesses and the Group’s equity participation in CTC Media. Viasat broadcasts more than 50 own-branded channels in 30 countries. • MTG Radio is the largest commercial radio operator in the Nordic region and the Baltics. MTG’s radio stations reach over three million listeners every day.

Markets businesses and the Group’s equity participation in CTC Media. Viasat broadcasts more than 50 own-branded channels in 30 countries. • MTG Radio is the largest commercial radio operator in the Nordic region and the Baltics. MTG’s radio stations reach over three million listeners every day. • The Online business area comprises leading Nordic internet retailing brands CDON.COM, Gymgrossisten.com and Nelly.com, as well as the BET24 online betting company and social networking company Playahead. • The Modern Studios production companies include Strix Television, which creates innovative and contemporary TV formats for the Nordic and international TV markets. Countries of operation Nordics: Sweden, Norway, Denmark, Finland Emerging Markets: Estonia, Latvia, Lithuania, Russia, Hungary, Czech Republic, Bulgaria, Slovenia, Macedonia, Poland, Romania, Belarus, Moldova, Georgia, Ukraine, Kazakhstan, Armenia, Kyrgyzstan, Uzbekistan, Slovakia, Serbia, Croatia, Montenegro, Bosnia and Herzegovina Africa: Ghana North America: USA

Modern Times Group MTG AB Modern Responsibility Report 2008 Key financial figures MTG’s 15 largest shareholders as at 31 December 2008: Name Total Class A shares Class B Shares Capital Votes Investment AB Kinnevik 9,935,011 9,605,257 329,754 15.1% 47.8% Swedbank Robur Funds 4,319,186 0 4,319,186 6.6% 2.1% Emesco AB 3,568,845 3,328,845 240,000 5.4% 16.6% Handelsbanken 3,087,109 230 3,086,879 4.7% 1.5% AMF Pension 2,944,041 0 2,944,041 4.5% 1.5% Nordea Funds 2,916,781 0 2,916,781 4.4% 1.4% SEB Funds 2,909,662 300 2,909,362 4.4% 1.4% State Street Bank 2,090,993 0 2,090,993 3.2% 1.0% JP Morgan 1,541,048 0 1,541,048 2.3% 0.8% Stenbeck, Jan Hugo (estate) 1,526,000 1,526,000 0 2.3% 7.6% Second AP Fund 1,445,549 0 1,445,549 2.2% 0.7% DNB Nor 1,174,729 0 1,174,729 1.8% 0.6% Credit Suisse 1,123,502 0 1,123,502 1.7% 0.6% Skandia Liv AB 841,316 107530 733786 1.3% 0.9% Others 26,466,603 523,264 25,943,339 40.2% 15.5% Total outstanding shares* 65,890,375 15,091,426 50,798,949 100% 100% *Does not include 480,000 classC shares held by MTG as treasury shares. Key figures from the past five years: 2004 2005 2006 2007 2008 Net sales (MSEK) 6,805 8,012 10,136 11,351 13,166 Operating income (MSEK) 762 1,213 1,777 2,027 2,598 Basic earnings per share (SEK) 11.23 17.78 21.57 20.35 43.25 Corporate Responsibility at MTG

hares held by MTG as treasury shares. Key figures from the past five years: 2004 2005 2006 2007 2008 Net sales (MSEK) 6,805 8,012 10,136 11,351 13,166 Operating income (MSEK) 762 1,213 1,777 2,027 2,598 Basic earnings per share (SEK) 11.23 17.78 21.57 20.35 43.25 Corporate Responsibility at MTG MTG’s Corporate Responsibility programme Modern Responsibility was first introduced in 2004 and has therefore been an integral part of our business for over four years. Acting responsibly towards our stakeholders has always been important to us but Modern Responsibility has structured and extended our understanding of this commitment, and actually made it easier to implement initiatives across the Group. Modern Responsibility enables the Group to deliver a consistently high level of performance and provides the platform for future development. This is encapsulated in our mission to “Maximise the Power of Entertainment”. Modern Responsibility has only increased in importance and relevance in the current global economic downturn. It is more crucial than ever in the current economic climate for us to focus on our core values and conduct our business in an ethical and responsible manner. Our ongoing and even tighter

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