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MAJOR CINEPLEX GROUP PLC. LIFESTYLE entertainment 1Q16 Analyst Meeting Paragon Cineplex, 16 th May 2016 1

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  • MAJOR CINEPLEX GROUP PLC.

    LIFESTYLEentertainment

    1Q16 Analyst MeetingParagon Cineplex, 16th May 2016

    1

  • MAJOR CINEPLEX GROUPAGENDA

    COMING ATTRACTION MOVIE LINE-UP 2016 - 2017

    FINANCIAL OVERVIEW

    2

    P.3

    FINANCIAL HIGHLIGHT RESULT

    EXPANSION PLAN

    GROWTH PROTENTIALS

    INTERNATIONAL PROJECTS

    LIFESTYLEentertainment

    P.8

    P.9

    BALANCE SHEET SNAPSHOT P.18

    STRATEGIC INVESTMENT P.19

    P.20

    SOCIAL MEDIA AND M GENERATION

    P.21

    P.23

    P.24

  • *Please note that release dates are subject to change.

    LIFESTYLEentertainment

    3

    Blockbuster Studios Release Schedule 2016

    2Q16

    Captain AmericaApr’16

    Luang Pee Jazz 4G(MPIC)*Apr’16

    X-Men: ApocalypseMay’16

    WarcraftMay’16

    Independence Day Jun’16

    Ice AgeJul’16

    3Q16

    Star Trek BeyondJul’16

    Suicide SquadAug’16

    Alice in WonderlandAug’16

    Thai Movies from;-Talent 1 (MPIC)*- GDH555- Khun Pan (MongKol)

    4Q16

    Thai Movies from;- CJ Major*- Transformation (2)*- Talent 1 (MPIC)*- GDH555- T moment

    Dr.StrangeOct’16

    Fantastic Beasts and Where to Find Them

    Nov’16

    Star Wars: Rouge OneDec’16

    COMING ATTRACTION MOVIES

    Finding DoryJun’16

    http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-castinghttp://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting

  • LIFESTYLEentertainment

    1H16 Coming Attraction Movies

    4

    Captain America: Civil War

    Batman VS Superman:Dawn of Justice

    X-Men Apocalypse

    Independence Day 2 Resurgence

    Deadpool

    Kung Fu Panda 3

    The Jungle Book

    The Huntsman: Winter's War

    Allegiant Part 1

    Finding Dory

    Angry Birds

    Teenage Mutant Ninja Turtles 2

    Thai Movies

    11-12-13 (M39) (Ghost movie)

    Luang Pee Jazz 4G (MPIC) (Comedy)

    Take Me Home (MPIC) (Horror)

    Midnight University (MPIC)

    Ghost Movie (MPIC)

    Buppha Arigato (Mongkol) (Comedy)

    Total 16 Thai Movies in 1H16*

    Rev. 114MB THBRev. 162MB THB

    Rev. 270MB THB

    Rev. 300MB THB

    COMING ATTRACTION MOVIES

    http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-castinghttp://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting

  • *Please note that release dates are subject to change.

    LIFESTYLEentertainment

    2H16 Coming Attraction Movies

    5

    Suicide Squad

    Doctor Strange

    The Legend of Tarzan

    Fantastic Beasts and Where to Find Them

    Star War: Rogue One

    The InfernoIce Age : Collision Course

    Alice in Wonderland

    The Magnificent Seven

    Underworld 5

    Jumanji

    Ghostbusters

    Star Trek Beyond

    Thai Movies

    8 Movies confirmed from MPIC Group*

    2 Movies confirmed from GDH555

    1 Movies confirmed from T Moment

    Total 30 Thai Movies in 2H16

    COMING ATTRACTION MOVIES

    http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-castinghttp://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting

  • *Please note that release dates are subject to change.

    LIFESTYLEentertainment

    6

    Big Blockbuster Studios Release Schedule 2017

    1H17

    Wolverine 3Mar’17

    Resident EvilJan’17 Fast 8

    Apr’17

    Pirates of the Caribbean May’17

    Transformer 5Jun’17

    2H17

    Spider-Man Jul’17

    War for the Planet of the Apes

    Jul’17

    X-Men: GambitOct’17

    Justice League: Part INov’17

    Thor: RagnarokNov’17

    Star Wars: VIIIDec’17

    Wonder WomanJun’17

    World War Z 2Jun’17

    COMING ATTRACTION MOVIES

    http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-castinghttp://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting

  • *Please note that release dates are subject to change.

    LIFESTYLEentertainment

    Movie lineup in 2017 is strong to robust Admission sales.

    7

    Fast & Furious 8

    Transformers 5

    Pirates of the Caribbean

    The Justice League Part One

    Spider-Man

    Thor: Ragnarok

    Wolverine 3

    Wonder Woman

    The Lego Batman Movie

    Terminator 2

    World War Z 2 Star Wars : Episode VIII

    Resident Evil: The Final Chapter

    Kong: Skull Island

    The Divergent Series: Ascendant

    Beauty and the beast

    War for the Planet of the Apes

    The Maze Runner: The Death Cure

    Guardians of the Galaxy Vol. 2

    The Mummy

    COMING ATTRACTION MOVIES

    http://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-castinghttp://film-book.com/san-anderas-2015-dwayne-johnson-1st-official-image-new-casting

  • LIFESTYLEentertainment

    FINANCIAL OVERVIEW 8

    IMAX

  • Amt. %

    Revenue 1,749 100% 1,936 100% 188 11%

    Gross margin 604 35% 672 35% 68 11%

    EBITDA 502 29% 556 29% 54 11%

    EBIT 292 17% 308 16% 16 6%

    Net Profit 199 11% 226 12% 27 14%

    Bt.Million 1Q15 1Q16growth

    Financial Highlights

    • Revenue increased from blockbuster movies and advertising business.

    1Q16 QUARTERLY BRIEFING

    9

    LIFESTYLEentertainment

  • 10

    4

    10

    21Q15 1Q16

    86

    0

    1,0

    40

    1Q15 1Q16

    1Q15 1Q16

    13

    2

    118

    1Q15 1Q16

    133

    56

    1Q15 1Q16

    26

    2

    32

    5

    1Q15 1Q16

    1Q15 1Q16

    Revenue Breakdown

    Total Revenue

    +11%(188mb.)Admissions Sale

    +21%(180mb.)

    Concession

    +24%(63mb.)Advertising

    +15%(39mb.)

    Bowling

    group

    -2%(-2mb.)Retails

    -11%(-14mb.)Movie Content

    -58%(-77mb.)

    Bt.

    mill

    ion

    1Q15 1Q16

    Core businesses growth from blockbuster movies and more locations.

    (Admissions rev., Concession rev., Advertising rev.)

    1Q16 QUARTERLY BRIEFING

    10

    LIFESTYLEentertainment

  • 304 336

    209262

    7

    12

    1Q15 1Q16

    BKK&Vicinity UPC International

    86

    0

    1,04

    0

    1Q15 1Q16

    Revenue : Admissions

    Bt.

    mill

    ion

    -

    Q Q Q Q Q Q Q

    Guest Count(million) ATP

    +3%(4bt.)

    1Q15 1Q16

    Admissions Revenue

    +21%(180mb.)

    520610

    Screen expansion+90 screens

    (16 Branches)

    304 336

    209262

    7

    12

    1Q15 1Q16

    BKK&Vicinity UPC International

    -

    -

    Q Q

    Guest Count(million) ATP

    ATP & Guest countsincreased

    +13%(0.7M)

    ATP

    +17%

    -

    -

    Q Q

    Guest Count(million) ATP

    1Q16 QUARTERLY BRIEFING

    11

    LIFESTYLEentertainment

  • 86

    0

    1,04

    0

    1Q15 1Q16

    Revenue : Admissions

    Bt.

    mill

    ion

    1Q15 1Q16

    “3 blockbuster movies made over 100mb. in 1Q16”Admissions Revenue

    +21%(180mb.) 1Q16

    1Q15

    Bt.

    mill

    ion

    Bt.

    mill

    ion

    162

    117 114

    76 52

    162MB.

    117MB.

    114MB.

    1Q16 QUARTERLY BRIEFING

    12

    LIFESTYLEentertainment

  • 262

    32

    5

    1Q15 1Q16

    Bt.

    mill

    ion

    Revenue : Concession“Maintain Concession-To-Box office momentum”

    1Q15 1Q16

    ConcessionRevenue

    +24%(63mb.)

    262

    436

    332 351 325

    31%29%

    31% 33%33%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    0

    100

    200

    300

    400

    500

    600

    1Q15 2Q15 3Q15 4Q15 1Q16

    Concessions sales

    %Concessions-to-Gross Box Office

    CTB

    262

    436

    332 351 325

    31%29%

    31% 33%33%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    0

    100

    200

    300

    400

    500

    600

    1Q15 2Q15 3Q15 4Q15 1Q16

    Concessions sales

    %Concessions-to-Gross Box Office

    262

    436

    332 351 325

    31%29%

    31% 33%33%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    0

    100

    200

    300

    400

    500

    600

    1Q15 2Q15 3Q15 4Q15 1Q16

    Concessions sales

    %Concessions-to-Gross Box Office

    1Q16 QUARTERLY BRIEFING

    13

    LIFESTYLEentertainment

  • 1Q15 1Q16

    • The more screens, the higher advertising revenue.

    Bt.

    mill

    ion

    Revenue : Advertising

    1Q15 1Q16

    AdvertisingRevenue

    +15%(39mb.)

    0

    50

    100

    150

    200

    250

    300

    350

    400

    450

    500

    1Q15 2Q15 3Q15 4Q15 1Q16

    Advertising revenue Margin

    Gross Margin

    304 336

    209262

    7

    12

    1Q15 1Q16

    BKK&Vicinity UPC International

    520610

    Screen expansion+90 screens

    (16 Branches)

    304 336

    209262

    7

    12

    1Q15 1Q16

    BKK&Vicinity UPC International

    +17%

    1Q16 QUARTERLY BRIEFING

    14

    LIFESTYLEentertainment

  • 10

    4

    10

    2

    1Q15 1Q16

    104 110 116124

    102

    28%31%

    36%38%

    31%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    0

    50

    100

    150

    200

    250

    300

    350

    400

    1Q15 2Q15 3Q15 4Q15 1Q16

    Bowling group revenues margins

    Bt.

    mill

    ion

    Revenue : Bowling Group

    • Revenue slightly decline due to 6 non performing locations closure.

    1Q15 1Q16

    Bowling group

    -2%(-2mb.)

    Gross Margin

    1Q16 QUARTERLY BRIEFING

    15

    LIFESTYLEentertainment

  • 13

    2

    11

    8

    1Q15 1Q16

    • Occupancy decrease slightly from 91.8% to 90.7%

    Bt.

    mill

    ion

    Revenue : Retails

    1Q15 1Q16

    RetailsRevenue

    -11%(-14mb.)

    132 133 129 127 118

    -

    -

    -

    -

    -

    0

    50

    100

    150

    200

    250

    300

    1Q15 2Q15 3Q15 4Q15 1Q16

    Rental&services Rev. margins

    Gross Margin

    1Q16 QUARTERLY BRIEFING

    16

    LIFESTYLEentertainment

  • 13

    3

    56

    1Q15 1Q16

    Bt.

    mill

    ion

    Revenue : Movie ContentsRevenue dropped from • Film right distribution : Less movie titles than 1Q15.• Sale of VCD/DVD : Exiting this sunset industry.• Film production : Recognize one series in 1Q15.

    1Q15 1Q16

    Movie ContentRevenue

    -58%(-77mb.)

    Film rights

    distribution

    Sales of VCD

    and DVD

    Film

    Production

    Sale of Pocket

    book

    Other income

    Q Q

    (-5%)-15mb.

    (-75%)-53mb.

    (-64%)-20mb.

    +14%+0.2mb.

    mb.

    1Q16 QUARTERLY BRIEFING

    17

    LIFESTYLEentertainment

  • 0.700.62 0.65 0.62

    -0.50

    -0.30

    -0.10

    0.10

    0.30

    0.50

    0.70

    0.90

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    18,000

    2013 2014 2015 1Q16

    Equity Net interest-bearing debts Net D/E

    6,648 6,797

    7,598 7,72214,246 14,519

    Dec 31,15 Dec 31,15 Mar 31,16 Mar 31,16

    Bt.million Dec 31,15 Mar 31,16 %chg

    Assets 14,246 14,519 1.9%

    Liabilities 7,598 7,722 1.6%

    Equity 6,648 6,797 2.2%

    B/S Snapshot

    Dec 31,15 Mar 31,16

    AS

    SET

    S

    AS

    SET

    S

    EQU

    ITY

    EQU

    ITY

    LIA

    BIL

    ITIE

    S

    LIA

    BIL

    ITIE

    S

    Asset grew slightly due to branches expansion while Net D/E

    maintained at low level.

    +1.9% +1.6%

    +2.2%

    0.700.62 0.65 0.62

    -0.50

    -0.30

    -0.10

    0.10

    0.30

    0.50

    0.70

    0.90

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    18,000

    2013 2014 2015 1Q16

    Equity Net interest-bearing debts Net D/E

    1Q16 QUARTERLY BRIEFING

    18

    LIFESTYLEentertainment

  • %Share & Closing price as on 10 May 2016 Bt.million

    Investments %ShareCost per

    ShareMajor's Cost

    Market

    value

    Unrealized

    Gain(Loss)

    Siam Future 24.18% 2.80 1,205 2,556 1,351

    MJLF 33.00% 10.00 1,089 1,634 545

    MPIC 92.46% 1.67 2,003 2,104 101

    PVRL 3.60% 120.45 203 687 484

    Total 4,499 6,980 2,481

    AS

    SET

    S

    EQU

    ITY

    • Investment portfolio as of 10 May,2016:• 24.18% in Siam Future Development Plc. (SF)• 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF)• 92.46% in M Pictures Entertainment Plc. (MPIC)• 40.00% in Thai Ticket Major Co., Ltd.• 3.60% in PVR Limited (PVRL)• 49.00% in PVR blu-O Entertainment Limited• 70.00% in Major Platinum Cineplex Co.,ltd. (Cambodia)• 60.00% in Major Platinum Cineplex Co.,ltd. (Lao)• 49.00% in CJ Major Entertainment

    Strategic investment and hidden profit1Q16 QUARTERLY BRIEFING

    19

    LIFESTYLEentertainment

  • LIFESTYLEentertainment

    GROWTH POTENTIALS 20

    IMAX

    LIFESTYLEentertainment

  • LIFESTYLEentertainment

    •Provinces is the key growth driver.

    2Q12 2Q13 21

    EXPANSION PLAN

    Number of Screens

    610

    •First comer in best location with strong landlord with reasonable revenue-sharing.

    •Capex per screen is lowest in region, has ability to negotiate with landlord, supplier.

    •The investment cost of new screen is approximately 10MB per screen.•Capex in Year 2016 is approximately 1 – 1.2B MB

    615

    https://www.facebook.com/Park24condo

  • LIFESTYLEentertainment

    MAJOR plans to new 86 screens to its portfolio in 2016 and currently operated 619 screens nationwide.

    2Q12 2Q13

    (Data as of May 2016)

    22

    EXPANSION PLAN

    No. Location Screens Opening Date

    1 Big C Lopburi (Opened 18February) 52 Big C Ratchaburi (Opened 31 March) 43 Phayao (Opened 5 April) 34 Ayuttaya Park (Opened 7 May) 65 Big C Ranong (Opened 13 May) 36 Tesco Lotus Satoon (Opened 19 May) 37 Tesco Lotus Nakornpathom 48 Friendship Mall Pakse 49 Tesco Lotus Nadee 3

    10 Tesco Lotus Phimai 211 Big C Sichon 212 Big C Baan Pai (Khon Kaen) 213 Big C Suksawas 4

    1Q16(9 Screens)

    2Q16(15 Screens)

    3Q16(21 Screens)

    14 Tesco Lotus (TBA) 315 Blu Port (Hua Hin) 616 Big C (TBA) 517 Big C (TBA) 418 Tesco Lotus (TBA) 319 Tesco Lotus (TBA) 320 Big C (TBA) 421 Local Developer 422 Big C (TBA) 323 Tesco Lotus (TBA) 324 Tesco Lotus (TBA) 3

    4Q16(41 Screens)

    No. Location Screens Opening Date

    1 Big C Lopburi (Opened 18February) 52 Big C Ratchaburi (Opened 31 March) 43 Phayao (Opened 5 April) 34 Ayuttaya Park (Opened 7 May) 65 Big C Ranong (Opened 13 May) 36 Tesco Lotus Satoon (Opened 19 May) 37 Tesco Lotus Nakornpathom 48 Friendship Mall Pakse 49 Tesco Lotus Nadee 3

    10 Tesco Lotus Phimai 211 Big C Sichon 212 Big C Baan Pai (Khon Kaen) 213 Big C Suksawas 4

    1Q16(9 Screens)

    2Q16(15 Screens)

    3Q16(21 Screens)

    MAJOR seek for long-term investment strategy growth, by plans to expand in both nationwide, but the focus is more branches in upcountry via hyper mart (Big C, Tesco Lotus) partners.

    We expect the positive momentum to continue over as Major targets as of 1,000 screens by 2020.

    https://www.facebook.com/Park24condo

  • M Generation (Loyalty Program) 2,500,000 Members

    Facebook: www.facebook.com/MajorGroup 2,557,000 Fan page

    Twitter: MajorGroup 1,309,450 Followers

    Instagram: MajorFriends 216,000 Followers

    Mobile Application 6,250,000 Download

    23

    Major leverage by using social media and loyalty program to create frequency movie as well as nurture movie culture.

    ID line: MajorFriends 15,270,800 Friends

    BUSINESS REVIEW LIFESTYLEentertainment

  • LIFESTYLEentertainment

    INTERNATIONAL PROJECT 24

    IMAX

  • International ProjectCambodiaCambodia: Major opened Major Cineplex by Cellcard with7 screens comprising five standard cinemas, one VIP cinema and one 4DX cinema (1,560 seats) and 14 bowling lanes at Aeon Mall, biggest Complex in Cambodia.

    With 150 million baht investment (MAJOR hold 70%) since June 2014, it has been break even since November 2015. Currently, Major Cineplex Cambodia holds 70% share of the market. Total 1,035,026 admissions were sold in year 2015.

    LaosLaos: Major will open a cinema complex called Major Platinum Cineplex By Huawei at THE LAOS World Trade Centre (WTC) Vientiane center with 5 screens (1,150 seats).

    The investment of 50 million baht will be made through a holding company of Major's international joint venture with Platinum Cineplex Ltd. (Local). Major hold 60% of JV.

    This project opened since August 2015. 25

    LIFESTYLEentertainment

  • International ProjectIndiaPVR CinemasPVR is the largest multiplex cinemas chain and the most premium film and retail entertainment company in India.

    Currently PVR Cinemas operates 519 Screens in 113 Locations.

    Major hold 3.60% of PVR Cinemas (PVRL)

    PVR BluOPVR bluO is well equipped largest bowling alley and entertainment destination for party & corporate event

    The company was incorporated in 2008 and joint venture with Major Cineplex Group PLC (49%) and PVR Ltd (51%)

    Currently, PVR BluO Operates 125 Bowling lanes in 7 Locations. 26

    LIFESTYLEentertainment

  • LIFESTYLEentertainment

    Thank You

    LIFESTYLEentertainment

    27