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TRANSCRIPT
MAJOR CINEPLEX GROUP PLC.
LIFESTYLEentertainment
Major Cineplex Group PLC.Analyst Meeting, Paragon Cineplex: May 13rd, 2013
Quarterly Briefing 1Q13
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainment
2
contents
The Bottom Line
1Q13 Financial ReviewReview of Revenue, Net profit B/S snapshot
Growth Potentials
LIFESTYLEentertainment
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainment
Highlight Results
“Major contribution are coming from cinema and advertising”
Operation
Expansion &
Investment
Lotus Maesod (4 Screens)Big C Roi Et (5 Screens)Lotus Nakornsawan (4 Screens)
Successful transformation to 268 digital screens
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Bottom Line Trend
Bt.millionNet profit
+28%YoYHigh profit from Advertising &
selling investment
235
301
193
293
215
81
235
218
195
165
301
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q131Q12 1Q13
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentLThe Revenue Review breakdown
Bt.millionRevenue+0.3%YoY
Cinema, Concession and Advertising drove core revenue
Cinema+3.8%
Concession+20.6%
Advertising+37.8%
Bowling group-5.1%
Retails-4.8%
Film Distribution
-44.7%
1,66
7
1,67
1
1Q12
101
96
1Q12 1Q13
804 83
4
1Q12 1Q13
196
237
1Q12 1Q13
169
233
1Q12 1Q13
129
123
1Q12 1Q13
44
267
148
1Q12 1Q131Q13
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review : CinemaBt.million
Cinema Group+7.1%YoY
Strong film line-up and concession variety built margin
804 83
4
196 23
7
1Q12 1Q13
Concession
+20.6%
GBO
+3.8%
1,0001,071
28%
31%
% Gross Margin
1Q12 1Q13
5.946.08
141
144
1Q12 1Q13
ATP & Guest count(Net Complementary)
196
237
24%
28%
1Q12 1Q13
Concession Rev. & % con-to-box
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentLenteLIFLIFThe Revenue Review : Advertising
Bt.millionAdvertising+37.8%YoY
More advertising revenue from confident sponsors i.e. Toyota and Pepsi
152
22687%
90%
152
226
TalentOne
MPIC
CineAd
233
169
1Q12 1Q13
1Q12 1Q13
Core Advertising revenue & % Gross margin
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainment
B/S SnapshotBt.million Dec 31, 12 Mar 31, 13 %chg
Assets 11,392 11,659 2%Liabilities 5,354 5,388 1%Equity 6,038 6,270 4%
6,038 6,270
5,354 5,38811,392 11,659
Dec 31,12 Mar 31,13
ASSE
TS
ASSE
TS
EQUI
TY
EQUI
TY
LIAB
ILIT
IES
LIAB
ILIT
IES
Net interest-bearing debts Equity Net D/E
0.600.51
0.42 0.39 0.37
YE09 YE10 YE11 YE12 End of 1Q13
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentInvestments Portfoliovs. Interest-bearing debts
• Investment portfolio as of May 10,2013:• 20% in Siam Future Development Plc. (SF) • 74% in M Pictures Entertainment Plc. (MPIC)• 33% in Major Cineplex Lifestyle
Leasehold Property Fund (MJLF)• 40% in ThaiTicketMajor Co., Ltd.• 45% in Major Kantana Broadcasting Co., Ltd.• 8.8% in PVR Limited (PVRL)• 49% in PVR blu-O Entertainment Limited• 80% in Talent One Co.,ltd.• 50% in K-Arena
6,270
5,38811,659
Mar 31,13
ASSE
TS
EQUI
TYLI
ABIL
ITIE
S
Bt.million
Interest-bearing debts 1Q13
Bank OD & ST loans 842
CP of LT borrowings 886
LT borrowings 174
Debentures 1,000
Total 2,901
Bt.million
Investments %ShareCost per
ShareMarket value*
Major's Cost
Gain(Loss)
MJLF 33% 10.00 1,525 1,089 436
Siam Future 20% 2.64 2,551 623 1,929
MPIC 74% 1.61 1,173 768 405
PVRL 8.8% 89.69 527 229 298
Total 5,776 2,709 3,067 *Closing price on May 9,2013
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentGROWTH POTENTIALSLIFESTYLEentertainment
11
FY13 Strategic Focus
• Complete transformation into 100% Digital Format.
• Shift Media Selling Strategy to high gear.
• Utilize M-Generation database to maximize online revenue.
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentGROWTH POTENTIALSFY13 Blockbuster Highlight LIFESTYLEE
*Movie line up will be add in movie line up around 3 months before showing
1Q13Hollywood MoviesJack the Giant Slayer G.I.Joe 2A Good Day to Die HardOz: The Great and PowerfulHansel and Gretel : Witch HuntersThai MoviesPee Mak Phrakhanong - 27 MarKhun nai Ho(M39)
2Q13Hollywood MoviesOBLIVIONIRON MAN 3STAR TREK INTO THE DARKNESSTHE GREAT GATSBYFAST SIX (FAST & FURIOUS 6)AFTER EARTHSUPERMAN: MAN OF STEELWORLD WAR ZThai MoviesPee Mak PhrakhanongSunset / คูกรรม (M39)
3Q13Hollywood MoviesTHE LONE RANGER PACIFIC RIM R.I.P.D. THE WOLVERINE 300: RISE OF AN EMPIREPERCY JACKSON : SEA OF MONSTERS WHITE HOUSE DOWNRIDDICK 3ELYSIUMThai MoviesTOOM YUM KUNG / ตมยํากุง*The rest will be announced later
4Q13Hollywood MoviesTHOR : THE DARK WORLD THE HUNGER GAMES : CATCHING FIRETHE HOBBIT 2 : THE DESOLATION OF SMAUG 47 RONIN CAPTAIN PHILLIPSThai Movies*The rest will be announced later
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentGROWTH POTENTIALS
Capacities LIFESTYLEentertainment
Expand more screens into high growth potential areas especially provincial.As of Apr 2013
FY10 FY11 FY12 FY13Screens 361 383 289 119
BKK & Vicinity 252 259 284 Bangyai 5IKEA : 15 Emporium 2 8
Bangkae : 10 TBA 5
Provincial 109 124 Udonthanee 1 Maesod 4 Additional screens Roi-Et 5Nakornsritham 4 Nakornsawan2 4
Ubonratchathani 2 7Nongbualumphu 4Ampo Mall Ayutthaya 4Suratthani 7Satoon 5Sakonnakhon 4Prachinburi 4Suphanburi 4Songkla 5Suratthani 2 5Klaeng 4Hadyai 10Chiangmai 2 11Samui 5
TBA 9
Lanes 504 506 180 94 BKK & Vicinity 386 386 IKEA 24
Provincial 94 94 Hadyai 16
International 24 Vasant Kunj 26 Bangalore 60 TBA 78Pune 36Mumbai 12Raja Garden� 22Chandigarh� 26
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentMajor Cineplex’s Expansion Trend
Major has presented in only 31 out of 77 provinces.
Major continues to expand more especially in provincial area which is high potential growth.
2010 2011 2012 ~2013 ~2015 ~2020
Location
No. of Screens / Locations
5356
Screens expansion supporting cinema’s revenue growth
~1,000
361 383
~510 ~600
70% 68% 69% 54% 52% 51%
30% 32% 31% 46% 48% 49%
2010 2011 2012 ~2013 ~2014 ~2015
Urbanization is a high potential growth. BKKUPCExpansion plan compare with BKK and UPC (as%)
50 410
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentCurrent Asia Market Trend
15Density: Population per Screen
High
Low
Cinema is blooming in Asia especially in China.
Asia becomes the world’s second largest regional for movie theaters.
SingaporePop: 5.3MScreen: 20026,300 ppl/Screen
MalaysiaPop: 30MScreen : 71841,000 ppl/Screen
TaiwanPop: 24MScreen : 58040,200 ppl/Screen
PhilipinesPop: 96MScreen : 700137,800 ppl/Screen
IndonesiaPop: 245MScreen : 726337,000 ppl/Screen
ThailandPop: 70MScreen : 84683,000 ppl/Screen
South KoreaPop: 49MScreen : 2,00024,500 ppl/Screen
IndiaPop: 1.26BScreen : 11,029114,000 ppl/Screen
ChinaPop: 1.35BScreen : 14,50095,000 ppl/ScreenThailand can reached to 2,500 – 3,000 Screens in the
future due Thailand is still under screened and penetration is still low.
1Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentGROWTH POTENTIALSLIFESTYLE
entertainment
16
Total 1,945,078 members (As of Apr’13) Ratio M Gen Card : Regular & Student
We are the only movie theaters in the world which collected customer database. Also adding value by using social media such as Online E-ticketing, Facebook, Twitter, Line, Mobile application, etc.
44.6%55.4% 444444...6%%%%%444444 66%%%%%%%%4444444444 66
Regular
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Student