lifestyle entertainment quarterly briefing...
TRANSCRIPT
MAJOR CINEPLEX GROUP PLC.
LIFESTYLEentertainment
Analyst MeetingParagon Cineplex, Siam Paragon: August 13th, 2013
Quarterly Briefing
2Q13
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue breakdown
Bt.million
Revenue+39%YoY
1,7
89
2,4
89
2Q12 2Q13
2Q12 2Q13
11
5
98
2Q12 2Q13
87
8
1,4
63
2Q12 2Q13
245
415
2Q12 2Q13
21
9
28
0
2Q12 2Q13
129
12
1
2Q12 2Q13
202
11
1
2Q12 2Q13
Solid growth driven by core business (Cinema, Concession and Advertising) Cinema
+67%
Concession
+69%
Advertising
+28%
Bowling group
-14%Retails
-7%
Film Distribution
-45%
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Bottom Line Trend
Bt.million
Net profit+92%YoY
230
440
2Q12 2Q13
2Q12 2Q13
19
3
29
3
21
5
81
23
5
23
0
19
5
16
5
30
1
44
0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Record-high profit from strong movies line-up, Healthy Advertising revenue and divestment of Siam Future (SF)
+46%
87
8
1,4
6320%
24%
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2Q12 2Q13
1,7
89
2,4
89
34%
37%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
0
500
1,000
1,500
2,000
2,500
3,000
2Q
12
2Q
13
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Gross Margin breakdown
Bt.million
Gross Margin+3%YoY
2Q12 2Q131
15
98
38%
33%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
11
5
98
2Q12 2Q13
878
1,46
3
2Q12 2Q13
245
415
2Q12 2Q13
219
280
2Q12 2Q13
129
121
2Q12 2Q13
202
111
2Q12 2Q13
11
5
98
2Q12 2Q13
878
1,46
3
2Q12 2Q13
245
415
2Q12 2Q1321
9
280
2Q12 2Q13
129
121
2Q12 2Q13
202
111
2Q12 2Q13
11
5
98
2Q12 2Q13
878
1,46
3
2Q12 2Q1324
5
415
2Q12 2Q13
219
280
2Q12 2Q13
129
121
2Q12 2Q13
202
111
2Q12 2Q13
21
2 26
5
88%86%
50%
55%
60%
65%
70%
75%
80%
85%
90%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
11
5
98
2Q12 2Q1387
8
1,46
3
2Q12 2Q13
245
415
2Q12 2Q13
219
280
2Q12 2Q13
129
121
2Q12 2Q13
202
111
2Q12 2Q13
11598
38%
33%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
21
2 26
5
88%86%
50%
55%
60%
65%
70%
75%
80%
85%
90%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
11
5
98
2Q12 2Q13
878
1,46
3
2Q12 2Q13
245
415
2Q12 2Q13
219
280
2Q12 2Q13
129
121
2Q12 2Q13
202
111
2Q12 2Q13
12
9
12
1
21%17%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
12
9
12
1
21%17%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
Cinema
Concession
Core Advertising
Bowling group
Retails
Margin is improving in Cinema & Concession section.
24
5
41
5
64%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
50
100
150
200
250
300
350
400
450
500
2Q12 2Q13
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review : Cinema
•Exceptional performance from 3 blockbuster films which generated more than 200MB for each movie.
Concession
+69%
GBO
+67%
87
8
1,4
63
24
5
41
5
2Q12 2Q13
2Q12 2Q13
* GC = Guest Counts
Movies GBO GC
Avenger 207 1.3
Battleship 132 0.9
Movies GBO GC
Pee Mak 463 3.5
Iron3 243 1.6
Fast6 215 1.5
2Q12
2Q13
Bt.million
Cinema Group
+67%YoY
Expansion & Investment – 2Q13
Lotus Nongbualumphu (4 Screens), Central Ubonrajathanee (7 Screens), Robinson Sakonnakhon (4 Screens)
YTD Jun13 Total 441 Screens
Successful transformation to 348 digital screens
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review : Cinema
Concession
+69%
GBO
+67%
87
8
1,4
63
24
5
41
5
2Q12 2Q13
2Q12 2Q13
Bt.million
Cinema Group
+67%YoY
1,123
1,878
29%
35%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
400
900
1,400
1,900
2,400
2,900
% Gross Margin ATP & Guest count(Net Complementary)
Concession Rev. & % con-to-box
2Q12 2Q13
6.10
10.60
150146
50
70
90
110
130
150
170
4.00
6.00
8.00
10.00
12.00
14.00
2Q12
2Q13
2Q12 2Q13
245
415
28% 28%
6%
11%
16%
21%
26%
0
50
100
150
200
250
300
350
400
450
500
2Q
12
2Q
13
2Q12 2Q13
•Strong movies line-up and concession boost margin
Cinema Group
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review : Advertising
Bt.million
Advertising+28%YoY
221
1Q12 1Q13
212
265
-
50
100
150
200
250
300
2Q12 2Q13
TalentOne
MPIC
CineAd
2Q12 2Q13
280
Core Advertising revenue &% Gross margin
212
265
88%86%
50%
55%
60%
65%
70%
75%
80%
85%
90%
0
50
100
150
200
250
300
350
2Q
12
2Q
13
2Q12 2Q13
•Advertising revenue contributed significant from highlight sponsors i.e. Toyota , Pepsi and Samsung.
• However margin is dropping because depreciation of LED & Plasma.
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentThe Revenue Review
11
5
98
2Q12 2Q13
-14%YoY
2Q12 2Q13
Revenue drop from 4 branches closed
( Rama2,Rama3,Bangna,Thonglor)
129
12
12Q12 2Q13
2Q12 2Q13
-7%YoY
Revenue drop from CAWOW ,Sizzler at Rama2 branch
Bowling Retail
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentB/S Snapshot
0.60
0.51
0.420.34
-0.50
-0.30
-0.10
0.10
0.30
0.50
0.70
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
YE09 YE10 YE11 End of 1Q12
Net interest-bearing debts Equity Net D/E
Bt.million Dec 31, 12 Jun 30, 13 %chg
Assets 11,392 12,362 9%
Liabilities 5,354 6,092 14%
Equity 6,038 6,270 4%
6,038 6,270
5,354
6,092
11,392
12,362
Dec 31, 12 Dec 31, 12 Jun 30, 13 Jun 30, 13
Dec 31,12 Jun 30,13
AS
SET
S
AS
SET
S
EQU
ITY
EQU
ITY
LIA
BIL
ITIE
S
LIA
BIL
ITIE
S
YE09 YE10 YE11 YE12 End of 2Q13
0.60
0.51
0.42 0.390.45
-0.50
-0.30
-0.10
0.10
0.30
0.50
0.70
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
YE09 YE10 YE11 YE12 1H13
Net interest-bearing debts Equity Net D/E
2Q13 QUARTERLY BRIEFINGLIFESTYLEentertainmentInterim Dividend Payout
Dividend payment is about Bt 443 millionon Sep 6, 2013
292.7
485.7464.9
740.9
57%
75% 74%
60%
0%
20%
40%
60%
80%
-100
100
300
500
700
900
1,100
1,300
1,500
1H10 1H11 1H12 1H13
Net Profit (Bt.Million) % Dividend Payout
292.7
485.7464.9
740.9
57%
75% 74%
60%
0%
20%
40%
60%
80%
-100
100
300
500
700
900
1,100
1,300
1,500
1H10 1H11 1H12 1H13
Net Profit (Bt.Million) % Dividend Payout
292.7
485.7464.9
740.9
57%
75% 74%
60%
0%
20%
40%
60%
80%
-100
100
300
500
700
900
1,100
1,300
1,500
1H10 1H11 1H12 1H13
Net Profit (Bt.Million) % Dividend Payout
1H11 1H12 1H13
1H10 1H11 1H12 1H13
Net Profit (Bt.Million) 292.69 485.75 464.94 740.88
% Dividend Payout 57% 75% 74% 60%
EPS (Bahts) 0.35 0.57 0.53 0.83
DPS (Bahts) 0.20 0.43 0.39 0.50
1H10 1H11 1H12 1H13
Net Profit (Bt.Million) 292.69 485.75 464.94 740.88
% Dividend Payout 57% 75% 74% 60%
EPS (Bahts) 0.35 0.57 0.53 0.83
DPS (Bahts) 0.20 0.43 0.39 0.50
2Q13 QUATERLY BRIEFINGLIFESTYLEentertainmentInvestments Portfolio
vs. Interest-bearing debts
• Investment portfolio as of Aug 7,2013:• 22% in Siam Future Development Plc. (SF) • 33% in Major Cineplex Lifestyle
Leasehold Property Fund (MJLF)• 75% in M Pictures Entertainment Plc. (MPIC)• 40% in ThaiTicketMajor Co., Ltd.• 45% in Major Kantana Broadcasting Co., Ltd.• 6.5% in PVR Limited (PVRL)• 49% in PVR blu-O Entertainment Limited• 80% in Talent One Co.,ltd.• 50% in K-Arena
6,038 6,270
5,354
6,092
11,392
12,362
Dec 31, 12 Dec 31, 12 Jun 30, 13 Jun 30, 13
Jun 30,13
AS
SET
S
EQU
ITY
LIA
BIL
ITIE
S
Bt.million
Interest-bearing debts 2Q13
Bank OD & ST loans 541
CP of LT borrowings 190
LT borrowings 620
Debentures 1,800
Total 3,152
Bt.million
Investments %ShareCost per
Share
Market
value*
Major's
CostGain(Loss)
Siam Future 22% 2.94 1,840 292 1,548
MJLF 33% 10.00 1,470 1,089 381
MPIC 75% 1.64 1,253 493 760
PVRL 6.5% 79.88 508 204 304
Total 3,232 1,787 1,445 *Closing price on Aug 7,2013
LIFESTYLEentertainment
Quarterly Briefing
2Q13GROWTH POTENTIALS
Major Cineplex’s Expansion Trend
Major has presented in only 30 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
72
~1,000
361 383
~501 ~60050
413
28 28 30 31 32 33
21 25 26
47
66
85
28 28 30 31 32 33
21 25 26
47
66
85
UPC
BKK
Urbanization is a high potential growthExpansion plan compare with BKK and UPC
49 53 56
78
98118
Singapore Taiwan Philipines Malaysia Indonesia Thailand South Korea India China
Current Asia Market Trend
14Density: 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.
What happens in Year 2013FY13 Blockbuster Highlight
*Movie line up will be added in movie line up around 3 months before showing
3Q13Hollywood MoviesPACIFIC RIM THE WOLVERINE R.I.P.D. ELYSIUMPERCY JACKSON : SEA OF MONSTERS WHITE HOUSE DOWNRIDDICK 3Thai MoviesYAM YASOTHORN / แหยม ยโสธร (Thai)
4Q13Hollywood MoviesTHOR : THE DARK WORLD CAPTAIN PHILLIPSTHE HUNGER GAMES : CATCHING FIRETHE HOBBIT 2 : THE DESOLATION OF SMAUG 47 RONIN Thai MoviesTOOM YUM KUNG / ต้มย ำกุง้ (Thai)* 4 Thai Coming Attraction Movies
FY14 Blockbuster HighlightYear 2014Robocop Need for Speed Captain America: The Winter Soldier Godzilla Maleficent RobopocalypseTransformer 4X-Men: Days of future pastDawn of the planet of the apesThe amazing of spider man 2Hercules: The Thracian Wars Resident Evil 6 The Hunger Games: Mockingjay, Part 1 The Hobbit: There and Back Again Veronica MarsNoahVampire Academy: Blood SistersHercules: The Thracian Wars
44.4%55.6%
RegularStudent
GROWTH POTENTIALS
16
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.
LIFESTYLEentertainment
Total 2,049,435 members (As of Aug7’13)
Ratio M Gen Card : Regular & Student Major Movie plus Application 1,800,000 Members(Andriod, IOS, Blackberry, Window 8)
GROWTH POTENTIALS
17
Major Friends: 1,300,000 Members
Major Group: 1,100,000 Members
Twitter Major Group: 500,000 Followers
Major is expert in online entertainment and interesting in online media.
LIFESTYLEentertainment
Instagram: 15,000 Members
International ProjectIndia: PVR Cinemas
LIFESTYLEentertainment
Currently, PVR cinemas has got 383 screens in 36 cities and another 75 new screens will be added in year 2013-2014.
Major hold 6.5% of PVR Cinemas (PVRL)
PVR Cinemas is now India's Largest Multiplex Chain.
International ProjectIndia: PVR BluO
LIFESTYLEentertainment
Currently, PVR BluO has got 110 Bowling lanes in 5 Locations and 78 Bowling lanes will be added in year 2013-2014.
International ProjectCambodia & Other Countries LIFESTYLE
entertainment
Cambodia: Major is partnering Japan's Aeon Mall to operate a cinema complex in Cambodia's capital with 7 screens with 1,400 seats and 14 bowling lanes.
The investment of 150 million baht will be made through a holding company of Major's international joint venture with a local firm.
This project will be finished in mid of year 2014.
Other Opportunities in South East Asia:- Cambodia, Vietnam are the first target.- JV with strong local partner. - Conditions must be reasonable
International ProjectCambodia with Aeon Mall
LIFESTYLEentertainment
OVERALL PICTURE
Mechanical work ZONE “B” 2F RC WORK
ZONE “A ” 2,3F RC WORK
International ProjectCambodia with Aeon Mall
LIFESTYLEentertainment
G, 1st & 2nd Floor Slab & 2nd to 3rd Floor Columns
MAJOR CINEPLEX GROUP PLC.
LIFESTYLEentertainment
Thank You
LIFESTYLEentertainment