2 bec world plc. presentation for investors november 2006 industry overview financial highlights
TRANSCRIPT
2
BEC World Plc.BEC World Plc.
Presentation for Investors
November 2006
Industry Overview
Financial Highlights
3
TV Advertising Trend:TV Advertising Trend:
0
10,000
20,000
30,000
40,000
50,000
60,000Bt m
High Growth Rate – Recovers FastSource: AGB Nielsen Media Research
YoY '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05
Growth 34% 25% 14% 19% 10% -15% 11% 18% 8% 14% 13% 12% 6%
4
Advertising Expenditure Trends:Advertising Expenditure Trends:
Source: AGB Nielsen Media Research
ESTIMATED TOTAL ADVERTISING EXPENDITURE BY MEDIUM
YTD JANUARY- SEPTEMBER 06 VS 05
BAHT MILLIONS
MEDIA YTD 06 SOV% YTD 05 SOV% DIFF % Change
TV 40,026 60.23 37,099 58.94 2,927 7.89
RADIO 4,887 7.35 4,618 7.34 269 5.83
NEWSPAPERS 11,418 17.18 11,766 18.69 -(348) -(2.96)
MAGAZINES 4,477 6.74 4,457 7.08 20 0.45
CINEMA 1,216 1.83 987 1.57 229 23.20
OUTDOOR 3,505 5.27 3,393 5.39 112 3.30
TRANSIT 721 1.08 536 0.85 185 34.51
IN STORE 207 0.31 89 0.14 118 132.58
TOTAL 66,458 100.0 62,945 100.0 3,513 5.58
5
Market Shares 2006:Market Shares 2006:
0
5
10
15
20
25
30
35
40
45
Ch.3 Ch.5 Ch.7 Ch.9 Ch.11 iTV
% Share of adspend Share of viewers
Source: Nielsen Media Research
First 9 Months:
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TV ADEX-2003-2005
TV Adex Ch.3 Ch.5 Ch.7 Ch.9 Ch.11 iTVIndustr
y
2005 10,392 8,238 14,010 6,956 1,171 9,244 50,011
2004 10,806 7,866 13,734 6,443 970 7,351 47,170
2003 10,857 7,923 12,030 4,554 996 5,928 42,288
'05 YoY -3.8% 4.7% 2.0% 8.0% 20.7% 25.8% 6.0%
'04 YoY -0.5% -0.7% 14.2% 41.5% -2.6% 24.0% 11.5%
Source: AGB Nielsen Media Research
7
Top 20 Advertisers on Television YTD Sep’06:Top 20 Advertisers on Television YTD Sep’06:
Source: AGB Nielsen Media ResearchCD, Governmental and Infomercial spending are excluded.
TV
Grand Total
3 5 7 9 ITV 11
ADVERTISER (000 BAHT) % % % % % %
UNILEVER (THAI) HOLDINGS 3,715,910 19.4% 10.0% 32.9% 10.5% 27.2%
PROCTER & GAMBLE (THAILAND) 1,100,606 43.6% 7.7% 42.2% 3.2% 3.3%
BEIERSDORF (THAILAND) CO.,LTD. 729,363 37.1% 5.1% 33.8% 3.8% 20.0% 0.1%
NESTLE(THAI) LTD. 638,181 28.5% 6.9% 41.6% 8.9% 14.1% *
AJINOMOTO SALES CO.,(THAILAND) 579,069 22.7% 12.0% 30.1% 10.0% 24.5% 0.8%
COLGATE-PALMOLIVE(THAILAND)LTD 577,187 42.5% 1.2% 43.3% 2.5% 10.5%
ADVANCE INFO SERVICE PCL. 529,782 17.5% 6.6% 36.9% 5.3% 32.9% 0.8%
KAO COMMERCIAL (THAILAND) CO., 522,297 26.6% 8.7% 39.6% 9.8% 15.3% 0.1%
TOYOTA MOTOR THAILAND CO.,LTD. 517,375 24.6% 9.4% 29.5% 18.6% 16.6% 1.2%
OSOTSPA (TECK HENG YOO) 496,834 28.4% 10.4% 28.8% 12.3% 15.4% 4.7%
PTT PUBLIC CO.,LTD. 492,938 19.4% 13.4% 17.1% 26.1% 13.9% 10.1%
JOHNSON&JOHNSON(THAILAND)LTD. 476,109 38.6% 12.2% 31.7% 11.4% 6.1%
L'OREAL (THAILAND) LTD. 475,105 26.2% 4.2% 34.8% 12.0% 22.9%
BOONRAWD BREWERY CO.,LTD. 426,194 21.5% 20.0% 26.1% 11.2% 16.2% 4.9%
TOTAL ACCESS COMMUNICATIONS 368,526 24.4% 12.8% 36.6% 14.4% 10.9% 0.8%
LION (THAILAND) CO.,LTD. 357,080 22.0% 14.5% 19.8% 12.8% 30.8%
BEER THAI (1991) CO.,LTD. 349,965 15.4% 25.7% 14.0% 13.6% 23.2% 8.1%
TRI PETCH ISUZU SALES CO.,LTD. 349,055 26.0% 17.6% 15.3% 20.1% 21.0%
CEREBOS(THAILAND)LTD. 258,018 35.5% 6.4% 29.6% 15.7% 11.1% 1.7%
A.P.HONDA CO.,LTD. 247,839 19.0% 13.8% 22.5% 14.8% 22.7% 7.3%
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Top 20 Advertisers on Television YTD Sep’06:Top 20 Advertisers on Television YTD Sep’06:
Source: AGB Nielsen Media ResearchCD, Governmental and Infomercial spending are excluded.
YTD’06 YTD’05 %CHG
TV
3 5 7 9 ITV 11
ADVERTISER (000 BAHT) %CHG %CHG %CHG %CHG %CHG %CHG
UNILEVER (THAI) HOLDINGS 3,715,910 2,686,480 38.3% 136.5% 6.5% 21.4% 52.5% 31.2%
PROCTER & GAMBLE (THAILAND) 1,100,606 1,203,909 -8.6% 1.3% 23.4% -15.1% 51.2% -60.0%
BEIERSDORF (THAILAND) 729,363 566,906 28.7% 156.4% -10.8% 5.7% 300.2% -18.3%
NESTLE(THAI) LTD. 638,181 596,998 6.9% 83.0% 53.3% -8.6% 24.9% -32.5% 532.7%
AJINOMOTO SALES (THAILAND) 579,069 677,180 -14.5% 8.9% -48.8% -30.6% 46.3% 13.4% -15.8%
COLGATE-PALMOLIVE(THAI) 577,187 351,348 64.3% 123.8% -57.9% 70.9% -29.5% 3.9%
ADVANCE INFO SERVICE PCL. 529,782 792,214 -33.1% -20.3% -55.1% -15.1% -42.6% -45.0% 105.6%
KAO COMMERCIAL (THAILAND) 522,297 490,403 6.5% 22.5% -23.1% 2.7% 140.3% -16.0% -7.4%
TOYOTA MOTOR THAILAND 517,375 276870 86.9% 84.6% -25.8% 114.6% 142.6% 184.0% 383.4%
OSOTSPA (TECK HENG YOO) 496,834 607187 -18.2% -11.1% -9.5% -30.1% -24.7% 2.1% -23.6%
PTT PUBLIC CO.,LTD. 492,938 235,987 108.9% 110.5% 70.7% 84.4% 155.3% 57.5% 307.4%
JOHNSON&JOHNSON(THAILAND) 476,109 361,135 31.8% 88.1% 7.4% 17.8% 62.6% -39.3%
L'OREAL (THAILAND) LTD. 475,105 356,953 33.1% 77.9% 2.4% 19.6% 79.2% 11.4%
BOONRAWD BREWERY CO.,LTD. 426,194 348,796 22.2% -8.7% 21.0% 73.6% 37.5% 29.6% -17.8%
TOTAL ACCESS COMM. 368,526 314,299 17.3% 46.7% -39.7% 43.2% 6.8% 31.4%
LION (THAILAND) CO.,LTD. 357,080 356,373 0.2% -0.3% 7.9% -34.8% 20.8% 32.6%
BEER THAI (1991) CO.,LTD. 349,965 235,437 48.6% 109.0% 35.3% 32.3% 83.1% 18.1% 147.7%
TRI PETCH ISUZU SALES CO.,LTD. 349,055 251,637 38.7% 34.4% 22.3% 174.4% 22.5% 30.6% -100.0%
CEREBOS(THAILAND)LTD. 258,018 201,964 27.8% 64.0% -23.5% 14.6% 85.9% -19.9% 911.5%
A.P.HONDA CO.,LTD. 247,839 96143 157.8% 138.2% 139.5% 124.7% 252.1% 112.9% 3647.9%
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STATION SHARE OF AUDIENCE 2005 - 2006WHOLE KINGDOM : ALL AGED 4+
06.00 - 24.00
POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000
Source: AGB Nielsen Media Research
13
12
13
12 12
13
12 12 12 12 12
13
14
ITV
CH11
CH9
CH7
CH5
CH3
TOTAL TVR
ITV 10.7 11.1 10.0 11.3 11.5 11.7 10.9 11.7 11.8 12.0 13.8 15.2 13.9
CH11 2.6 3.2 3.3 2.7 3.0 3.0 2.8 2.7 3.8 2.6 2.5 2.7 2.3
CH9 10.3 9.8 9.2 10.4 10.4 10.8 11.2 10.5 11.7 10.5 11.0 9.5 8.6
CH7 40.5 36.1 43.4 40.6 40.2 43.0 43.8 43.0 38.7 41.2 39.8 42.9 43.4
CH5 8.0 7.6 7.4 7.0 6.6 6.8 7.3 7.7 8.1 7.1 7.5 7.4 6.9
CH3 28.0 32.2 26.5 28.0 28.1 24.7 23.9 24.5 25.9 26.6 25.4 22.2 24.8
TOTAL TVR 13 12 13 12 12 13 12 12 12 12 12 13 14
OCT 2005
NOV 2005
DEC 2005
JAN 2006
FEB 2006
MAR 2006
APR 2006
MAY 2006
JUN 2006
JUL 2006
AUG 2006
SEPT 2006
OCT 2006
10
STATION SHARE OF AUDIENCE 2005 - 2006WHOLE KINGDOM : ALL AGED 4+
18.00 - 22.30
POTENTIAL 2005 : 58,396,000 ; 2006 : 59,400,000
Source: AGB Nielsen Media Research
2524
27
2324 24
22 2223 23
24
26 27
ITV
CH11
CH9
CH7
CH5
CH3
TOTAL TVR
ITV 10.7 10.3 9.1 11.0 11.4 12.0 11.8 12.4 12.0 12.2 15.3 16.7 15.2
CH11 2.1 2.5 2.1 1.8 1.9 2.2 2.3 1.9 3.0 1.7 1.6 1.7 1.6
CH9 10.1 9.6 8.2 9.9 10.1 10.9 11.7 10.9 11.6 10.0 10.7 9.3 8.3
CH7 42.3 36.5 49.5 44.4 43.6 48.0 46.8 46.5 41.9 44.2 41.6 45.5 44.5
CH5 6.8 5.9 5.7 5.4 5.1 5.1 6.0 6.3 7.0 6.1 7.0 6.2 6.0
CH3 28.0 35.2 25.3 27.6 27.8 21.7 21.5 22.0 24.6 25.8 23.7 20.6 24.3
TOTAL TVR 25 24 27 23 24 24 22 22 23 23 24 26 27
OCT 2005
NOV 2005
DEC 2005
JAN 2006
FEB 2006
MAR 2006
APR 2006
MAY 2006
JUN 2006
JUL 2006
AUG 2006
SEPT 2006
OCT 2006
11
AUDIENCE SIZE BY CHANNEL - WEEKDAY
0
5000
10000
15000
20000
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
Thousands
CH3 CH5 CH7 CH9 CH11 CHITV
Source: AGB Nielsen Media Research
12
TV VIEWING PATTERNBY AGE GROUP - WEEKDAY
0
5
10
15
20
25
30
35
40
6:0
0
7:0
0
8:0
0
9:0
0
10
:00
11
:00
12
:00
13
:00
14
:00
15
:00
16
:00
17
:00
18
:00
19
:00
20
:00
21
:00
22
:00
23
:00
A 4-9 A 10-14 A 15-24 A 25-39 A 40-49 A 50+ All 4+
Source: AGB Nielsen Media Research
13
AUDIENCE SIZE BY CHANNEL - WEEKEND
0
5000
10000
15000
20000
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
Thousands
CH3 CH5 CH7 CH9 CH11 CHITV
Source: AGB Nielsen Media Research
14
TV VIEWING PATTERN BY AGE GROUP- WEEKEND
0
5
10
15
20
25
30
35
40
6:0
0
7:0
0
8:0
0
9:0
0
10
:00
11
:00
12
:00
13
:00
14
:00
15
:00
16
:00
17
:00
18
:00
19
:00
20
:00
21
:00
22
:00
23
:00
A 4-9 A 10-14 A 15-24 A 25-39 A 40-49 A 50+ All 4+
Source: AGB Nielsen Media Research
15
Industry Reform:Industry Reform:
We shall see NBC and Broadcasting Bill shortly.
The reform is about to begin.
The reform is “blessing in disguised” for BEC as the industry will be more transparent and orderly.
Long awaited new investment opportunities in domestic market will be opened for BEC.
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3Q06 +/- QoQ +/- YoY
Advertising 1,534 -4% 30%
Copyright & Services 84 -3% 7%
Concerts & Shows 164 278% -18%
Total Sales Revenue 1,782 3% 22%
3rd Quarter of 2006 Highlights:3rd Quarter of 2006 Highlights:
-
300.0
600.0
900.0
1,200.0
1,500.0
1,800.0
Adverti
sing
Copyrig
hts/S
erv.
Concerts
& S
hows
Total
Sales Rev
enue
3Q06
2Q06
3Q05
17
BEC WorldBEC WorldThird Quarter of 2006Third Quarter of 2006
BEC World Third Quarter of 2006
Operating Results ฿ Million % +/- YoY +/- QoQ
Total Sales Revenues 1,783 100% 319 22% 57 3%
Operating Costs
Cost of Services 719 44% -11 -1% -10 -1%
Cost of Shows 179 109% -30 -14% 131 228%
Cost of Sales & Services 898 50% -41 -4% 122 16%Selling & Admin. Expenses
319 18% 64 25% 7 2%
Total Operating Costs 1,217 68% 23 2% 129 12%
Operating Profit 566 32% 296 109% -72 -11%Share of Associates' Results
-10 -1% -11 -719% 1 -12%
Other Income 33 2% 18 116% 8 32%
Profit Before Tax 589 33% 302 105% -62 -10%
Corporate Income Tax 167 9% 81 94% -27 -14%
Profit After Tax 422 24% 221 110% -35 -8%Profit of Minority's Interest
-5 0% 0 -4% 3 -34%
NET PROFIT 427 24% 221 107% 38 -8%
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BEC World First 9Mth. 2006Operating Results ฿ Million % +/- YoY Advertising Income 4,627 90% 1,065 30% Copyright & Services 242 5% 45 23% Concerts & Shows 281 5% -589 -68%
Total Sales Revenues 5,150 100% 521 11%
Operating Costs Cost of Services 2,161 44% 37 2% Cost of Shows 291 104% -510 -64%Cost of Sales & Services 2,452 48% -473 16%Selling & Admin. Expenses 916 18% 67 8%Total Operating Costs 3,368 65% -406 -11%Operating Profit 1,782 35% 927 108%Share of Associates' Results -14 0% -10 228%Other Income 90 2% 36 67%Profit Before Tax 1,858 36% 954 105%Corporate Income Tax 530 10% 223 72%Profit After Tax 1,328 26% 731 122%Profit of Minority's Interest 0 0% -9 -100%NET PROFIT 1,328 26% 740 126%
BEC WorldBEC WorldFirst 9Mth. 2006First 9Mth. 2006
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High Operating Leverage:High Operating Leverage:
As our operating costs and expenses are mostly fixed in nature, thus BEC World has high operating leverage.
Our profitability will improve greater than the growth rate of our revenue growth.
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2.80
3.00
Revenue Profit
Revenue and Profit Growth
(1Q99 is BASE)
