Video International

—Video International is the largest operator in the Eastern

—Europe media advertising market, providing professional outsourcing

—services in media-selling

—Video International includes media-selling companies, that occupy

—leading positions in the major advertising media market segments

—VI is doing business in Russia and the CIS countries

Video International

—Founded in 1987

—About 3,000 employees in 29 cities in four countries

—Annual trade turnover in 2011 – over $2 billion

VI business – media advertising sales

RussiaBelorussia

Ukraine

Kazakhstan

—Video International is covering various media29 subsidiaries across Russia and CIS countries operating as a unique integrated IT system, covering the network of

—182 cities—Over 100 various media

including federal and regional TV

channels, radio stations, web sites—about 300 ad agencies,

acting as consistent users and buyers

Media(VI clients)

seeking to increase profits, i.e. sell all goods

available

Advertisers(VI customers)

seeking to reduce spendings

Focused on contacts with target audiences

only

VI is an automated trading site

The core of VI business is to provide effective interaction between advertisers and media

VI is involved in optimizing ad sales to provide the most effective ad placement available

VI Clients

—VI provides services to the Clients focusing business on their interests

—The Clients pay commission fee to VI for services provided

Commission fee Clients(media)

Services

Media owners

What is VI value for market players?

For advertisers (customers)

- Stability of ad campaigns operation

- Opportunity to provide ad contacts via “single source window”

For media(clients)

- Highest and predictable profits

- Promotion and development of new ad contact forms at the market

- Complex traffic services

- Reliable payment transactions

- Professional consulting

- Research industry development support

- Interaction with government structures

VI provides full operating ad contact sales cycle

Demand research and forecasting

Form price proposals

Conduct negotiations with clients

Conclude agreements and form & other legal documents

Ad materials delivery

Submit calculations

Order fulfillment monitoring

Conduct payment transactions between parties

Data reporting

The largest VI’ clientsSales. Full service

TV Radio Internet New media(digital indoor and cinema)

other other other other

IT and analytics

Services:—provide sub licenses for specific program complexes to support sales process—full scale services to integrate complexes of clients' sales, technical support and

corresponding consulting activities—forecasting of inventory and TV channel audience—analytical, survey and forecasting of ad market development—legal issues consulting activities, etc.

Clients:

—"EvereST-S", ad sales agency for TV channels under CTC Media holding company

—"RTR-Media", ad sales agency for TV channels under VGTRK holding company

Source: TNS Media Research, audience: Russia, 4+, January-February 2012 * Russia 1, Russia 2, Russia 24

14.7

16.9

21.612.7

9.7

3.12.83.4

15.2

Channel One VGTRK Gazprom-Media СТС Мedia National Media Group UTV Media

TV Center Prof-Media Others

Audience distribution between largest media holding companies in 2012.

TV, %(Sales. Full service)

*

VI’s business overseas

Analytical research center (ACVI)

Basis of Video International business

Unique research structure with 15 year history

Experienced specialists, including doctors of science and candidates of science (PHDS)

The most complete and exact information about conditions, trends and perspectives of media market development in Russia and the CIS

IT-department 

About 100 employees.15-years of experience in developing innovative software products for the

media advertising market

Support of the technological cycle for mass media advertising opportunities implementation

Advertisment placement software VIMB (Video International Media Buying)

—Innovative program software, VIMB (Video International Media Buying) ad placement system, developed by the IT department, is providing a technological cycle of various media advertising opportunities, to unite all the process participants in a single program environment

—Year of creation: 1996

—The system is being developed and updated due to changing requirements dictated by the market

Advertisment placement software VIMB

Advertisment placement software VIMB

—Remote business management

—Full automation: from advertising campaign orders to receiving media reports

—Maximal transparency

—Operational efficiency

—Optimal distribution of volumes of data

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

est

imat

e

100414

8741177

1644

2126

2790

3250

41803887

4582

5302

161256

329 415 526 663859

1011745

9121073

VI Ad Market

VI business and Russian ad market dynamics, % (rub.) (2000 = 100%)

Source: ACVI, 2000-2011 , % (rub.) (2000=100%)

VI business strategic directions

— Effective business development in various media segments

— Develop business expansion abroad

Thank you for your attention!

25, Akademika Pavlova st., 121359 Moscow, Russia Tel.: +7 (495) 234-4400, fax: +7 (495) 737-5006, e-mail: pr@vi.ru