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Corporate UpdateJuly 2017
PT Media Nusantara Citra Tbk.
Listed and traded on the Indonesia Stock Exchange
STOCK CODE: BMTR
MNCN
MSKY
Disclaimer
2
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In addition, the information contained in this presentation contains projections and forward-looking statements that reflect thecompany's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors.No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected.
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MNC Media Corporate Structure
4
Global Mediacom Tbk
Media Nusantara Citra Tbk
Content and Advertising Based Media
62.6%
MNC Sky Vision Tbk PT MNC Kabel Mediakom
PT Sky Vision NetworkSubscription Based Media
Online Media
* total group ownership is currently over 95%
87.6%* 100 %
100 %
University4% Academy
3%
Senior High29%
Junior High19%
Elementary23%
NA22%
6
Population (2016) A Young Population : 80% - Below 50yr
Macro drivers support industry growth
Completed Education Level
Source: Nielsen Media ResearchSource: Indonesia Bureau of Statistics 2012
Monthly Household Expenditure (Rp1,000)
A large & young population
200mn people below age of 50
A rising middle class
Strong economic growth driven
by domestic consumption
60mn TV household
Only 4% of population has
university degrees
Indonesians prefer to watch TV
than to read, watching 5 hours
of TV per day.
What are the macro drivers?
A1 35006% A2 2501-
35009%
B 1751-250020%
C1 1251-175026%
C2 901-125021%
D 601-90013%
E <6005%
0-1428%
15-2417%
25-5443%
55-647%
65+5%1,374
1,267
258103 68 31 23 6
Chin
a
India
Indonesia
Ph
ilippin
es
Thaila
nd
Mala
ysia
Au
str
alia
Sin
ga
pore
Source: MPA 2016
in millions
Source: United Nations (2015)
7
Well Positioned in a Conducive Growth Environment
Indonesia’s net ad spend as % of GDP is the lowest in the region, reflecting strong market growth potential
Price for a 30 seconds prime time spot is cheap compared to other ASEAN countries
Net Ad Spend as a Percentage of GDP (2016)
Source: Media Partners Asia 2016
USD/spot
30 seconds prime time spot
$5.400 $5.950 $6.600$10.600
$16.400
$40.000
$80.000
Indonesia Malaysia Vietnam Thailand Philippines Singapore Australia
Source: Media Partners Asia 2016
0,5%
0,5% 0,5%
0,4%
0,3%
0,2%
Vietnam Philippines Singapore Thailand Malaysia Indonesia
% of GDP
8
Prime time advertising slots are limited; strong demand for advertising
Local brands have been aggressive in advertising to compete with multi national companies
We expect automotive and financial companies to increase TV advertising budget
Industry Dynamics
Limited Supply : Only 11 FTA TV stations Demand (More brands advertising on TV)
42%
26%
20,1
10%3%
MNCN
SCMA
VIVA
Trans
Others
Source: Nielsen All-Time all demography June 2017
Limited Supply : Only 11 FTA TV stations
9
Low Penetration Rates in Key Segments
1,1 1,2 1,3 1,3 1,4 1,5 1,6 1,7 1,8 1,9 1,90,5 0,6 0,7 0,7 0,8 0,9 1,0 1,1 1,1 1,2 1,2
2012A 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E 2022ETV Other
100% 100% 100% 100% 99% 99% 98% 97%89% 87% 85%
64% 62%
100% 100% 100% 100% 99% 99% 98% 97%89% 87% 86%
64% 62%
Korea Japan Singapore Australia Hong Kong Malaysia China Thailand Taiwan Vietnam Philippines India Indonesia
Low TV household penetration in Indonesia, relative to rest of Asia
Steady expansion of Indonesia advertising market
Asia Pacific TV Penetration of Total Households (2016 and 2017)
Source: Media Partners Asia 2016
Net advertising market (US$bn)
1.61.8 2.0 2.0 2.1
2.32.5 2.7 2.9 3.0 3.2
7.0%
6.0%
2012A – 2022E CAGR
(Total)
2012A – 2022E
CAGR (TV)
10
Media viewership in 2015
10
14
16
38
52
96
Cinema
Radio
Internet
OOH
TV
Consumer Media View 2015 (%)
1214
30
2013 2014 2015
People Owning Smartphone (%)
Source: Nielsen Consumer Media View 2015
11
32%
61%
71%
2011 2014 2015
3 hours73%
>3 hours27%
% of daily internet user
Time Spent Internet in Daily (%)
vs
TV average of 5 hours per day
TV still Outweighs Growing Digital and Internet Consumption
Source: Nielsen Consumer Media View 2015
The average American watches an astonishing 5 hours and 4 minutes of TV a day according to Nielsen.
TV’s cumulative audience increase, to 213.5 million people, or 87.9%. A year ago, reach was 210.3 million, or 87.6%.
Americans aged 18 to 24, still watch 16.2 hours a week, whilst the 35 or older watch double that in a week.
About 50 percent of Americans now have subscription services like Netflix, Amazon Prime and Hulu in their homes.
More platforms more content, benefitting content provider.12
More People Are Watching TV Now Than a
Decade Ago, and millennial will come around, too
04.31 04.34 04.51
00.33 00.3300.32
01.52 01.5101.54
00.08 00.0900.1000.14 00.1400.1200.13 00.0900.05
00.58 00.4800.49
01.39
01.02 00.47
00.31
00.19 00.12
00.00
01.12
02.24
03.36
04.48
06.00
07.12
08.24
09.36
10.48
12.00
Q1 2016 Q1 2015 Q1 2014
source: Nielsen 1Q US Total Audience Report
Tablet
Smartphone
PC
Multimedia Device
Game Console
DVD
Radio
DVR/Time-Shifted TV
Live TV
14
FTA TV TIME SPENT IS STILL GROWING, WITH 35+ AGE
GROUP BEING MOST DOMINANT
4.18 4.34
4.26 4.37
4.25 4.53
4.214.58
4.29
5.20
2006 2016
50+
35 - 49
25 - 34
15 - 24
5 - 14
Hr:M Hr:M
13%
21%
21%
23%
21%
18%
27%
17%
19%
18%
Source: Nielsen, Universe %, 2006 (8 cities), 2011 (10 cities) and Jan – Sep 2016 (11 cities), all people 5+, All Time
15
OVER 90% OF ONLINE INDONESIANS REGULARLY
CONSUME TV AND ONLINE MEDIA SIMULTANEOUSLY
Simultaneous media consumption (TV + Online) – 2015 vs 2011
AGEDUAL SCREEN – 2011 DUAL SCREEN – 2015
TOTAL
10’s
20’s
30’s
40’s
50’s0%
45%
45%
46%
43%
47%
94%
93%
93%
96%
92%
88%
Source: Nielsen Cross Platform Report 2015, 16+
16
... AND THEY’RE MOST LIKELY TALKING ABOUT TV
Participation in social TV activity during 2015 (among total online population)
INTERACTING WITH OTHERS OR
POSTING COMMENTS about TV
Programs (Incl. Sports) or Movies as
you are watching them, or about those
you watched recently
READING OTHER PEOPLE’S
COMMENTS about TV Programs (Incl.
Sports) or Movies as you are watching
them, or about those you watched
recently
Weekly or more often
Within last 12 months 79%
58%
Weekly or more often
Within last 12 months 86%
57%
Source: Nielsen Cross Platform Report 2015, 16+
Media Credibility and Popularity
17
Print10%
Social Media14%
News Portal18%
Television57%
N/A1%
Most Accessible %Print14%
Social Media5%
News Portal11%
Television66%
N/A4%
Most Trusted %
Source: Kompas Media Survey, May 15th 2017
18
Indonesia’s Media Advertising Market Share
2022F2017
Given the infrastructure constraint, TV is the only medium to reach a mass audience. TV
advertising is expected to maintain a dominant market share
Online advertising to take market share from Newspaper and Magazine
The Largest Integrated Media Company in Southeast Asia
RADIO
PRINTENTERTAINMENT
NEWS & SPORTS
SUPPORTINGFREE-TO-AIR TV CONTENT
20
PAY-TV CHANNELSCONTENT LIBRARYTALENT
MANAGEMENT
Content library containsmore than 300,000 hoursand increasing by morethan 15,000 hours peryear
TALENT SEARCH/ NEWS/ VARIETY/ SPORTS
ANIMATION
IN HOUSE PRODUCTION UNITS
DRAMA/ MOVIES/ FTV
RCTI, MNCTV,
GlobalTV, iNewsTV
MNC Sports
Our Key Growth Drivers
21
RCTI, MNCTV, and Global TV grow significantly outperforming the industry
iNewsTV a national network with focus on news, infotainment and sports
22 exclusive channels on MNC Sky Visionto generate ad revenue
Integrated TV studios has been completed in 2015, is set to increase production capacity and quality of programming with efficient costs
Content is King
Content is the only way to capture audience share
and monetize advertising dollars
Indonesians love “Sinetrons” and we broadcast
many of the top drama series
We have licensed popular International programs
such as Master Chef, Indonesian Idol and X Factor
Exclusive programming with top Hollywood studios
More than 300,000 hours of content library and
increasing by more than 15,000 hours annually
We also have 22 MNC branded Pay TV Channels.
These channels are integral to our content strategy
Creating the best content is our top priority
“Content is where I expect much of the real money will be
made on the Internet, just as it was in broadcasting.
The television revolution that began half a century ago
spawned a number of industries, including the manufacturing of
TV sets, but the long-term winners were those who used the
medium to deliver information and entertainment.”
“Content is King” by Bill Gates in 1996
22Source: Nielsen Prime-Time All Demographic 5+ Audience Share
Prime-Time Nielsen TV stations ranking
Rank Station Target
Audience
Jun-17
Share
1 RCTI ABC 23,8
2 SCTV ABCD 15,8
3 ANTV ABC 14,3
4 IVM ABCD 9,8
5 MNCTV ABCD 9,4
6 GTV ABC 7,7
7 TVONE ABC 5,8
8 TRANS7 ABC 5,7
9 TRANS ABC 4,1
10 METRO AB 1,8
11 INEWS AB 1,1
Top 20 Drama Series as of April 2017
23
• New comedy drama series produced by MNC Pictures “Dunia Terbalik” performed very
strong topping the program charts.
• 9 out of the Top 20 program for April 2017 belongs to MNC
Source: Nielsen, ALL DEMO, 5+
No. Program Name Chn TVR SHR
1 DUNIA TERBALIK RCTI 5.2 22.9
2 ANAK LANGIT SCTV 4.3 18.8
3 BOY SCTV 3.0 16.6
4 TOP - TUKANG OJEK PENGKOLAN RCTI 3.6 15.7
5 BERKAH CINTA SCTV 3.5 19.5
6 ANANDHI ANTV 2.5 19.7
7 PAAKHI ANTV 2.1 15.9
8 ROMAN PICISAN THE SERIES RCTI 2.1 12.9
9 ANAK SEKOLAHAN SCTV 2.1 13.2
10 MOHABBATEIN ANTV 2.1 8.3
11 GOPI ANTV 2.0 16.0
12 HATI YANG MEMILIH RCTI 2.0 12.9
13 LONCENG CINTA ANTV 2.0 8.4
14 GEET ANTV 1.9 10.3
15 BINTANG DI HATIKU RCTI 1.9 15.7
16 RARA & PERI IKAN LEUNGLI MNCTV 1.9 7.6
17 CINTA DARI SURGA RCTI 1.8 12.5
18 NADIN ANTV 1.8 7.9
19 MIA IKAN MAS MNCTV 1.7 6.9
20 SEPATU SUPER (R) MNCTV 1.6 16.0
Top 20 Drama Series as of April 2017
Biggest producer of in-house content in Indonesia
Star Media Nusantara
RCTI, MNCTV, GTV and Sport
Productions
MNC Pictures
MNC Animation
• MNC produces over
15,000 hours of in house
content every year. 41
hours per day! More than
any competitors in
Indonesia.
• Full control from talent
management to
production to broadcast
• 4 in house production
divisions: The
programming strategy
allows RCTI to achieve
industry leading 55%
EBITDA margins.
Integrated end to end programming strategy drives highest margins
24
25
MNC Has The Best Talent Search Format Lineup
Pioneering the international scale talent search programs in Indonesia, such as
Indonesian Idol - 8th season and running,
X-Factor Indonesia - 2nd season and running,
Rising Star Indonesia - The 1st Season with interactive talent search programs
MasterChef Indonesia - 3rd season and running
The Voice Indonesia – Aired February 2016
Our talent search programs are 3x more profitable than competing “In-house” dangdut singing competition
Sports
Movies
Lifestyle
News
Entertainment
Kids
Local content
26
The most comprehensive Pay-TV Channels line-up
We have the most comprehensive Pay TV channel lineup in Indonesia
Our customers prefer local content
Producing content in Bahasa Indonesia is our competitive advantage
We generate subscription revenue and advertising revenue
means it is the leader in its Pay TV category
Top 20 Most Watched Pay TV Channels for 2016
27
Source: AGB Nielsen Report
NO. CHANNEL
11 COMEDY CHANNEL
12 NGC WILD
13 FOX MOVIES PREMIUM
14 CINEMAX
15 MNC ENTERTAINMENT
16 MNC INFOTAINMENT
17 MNC NEWS
18 MOVIE CHANNEL
19 CHANNEL V
20 CELESTIAL MOVIES
NO. CHANNEL
1 DISNEY JUNIOR
2 DISNEY CHANNEL
3 CARTOON NETWORK
4 NATGEO CHANNEL
5 KIDS CHANNEL
6 DRAMA CHANNEL
7 MNC MUSLIM
8 MNC SPORTS
9 HBO HITS
10 HBO
2828
Pay TV Channels to drive ad revenue for MNCN
OPPORTUNITIES
MNCN has produced and packaged 22 Pay TV
channels exclusively for MNC Sky Vision. In return
MNCN receives 100% ad revenue
MNC Sports, MNC Infotainment, MNC News and
MNC Business, MNC Music Channel are ranked #1 in
their respective categories versus its International
peers
We expect MNC Channels to generate meaningful
advertising revenue as subscribers grow
MNC Channels share of Pay TV audience in 2016
Source : Nielsen TV Audience Measurement 2016
Rank Sports Channel Channel Share
1 MNC SPORTS 51,70%
2 FOX SPORTS 2 20,23%
3 FOX SPORTS 15,58%
4 SOCCER CHANNEL 12,49%
Rank News Channel Channel Share
1 MNC NEWS 50,822%
2 BERITA SATU 37,15%
3 MNC WORLD NEWS 7,18%
4CNN
INTERNATIONAL4,86%
Rank Lifestyle Channel Channel Share
1 MNC INFOTAINMENT 25,40%
2 MNC LIFESTYLE 15,05%
3 TRAVEL LIVING CHANNEL 12,91%
4 FOOD AND TRAVEL 11,84%
Rank Music Channel Channel Share
1 CHANNEL V 54,68%
2 MUSIC CHANNEL 45,32%
Rank Entertainment Channel Channel Share
1 DRAMA CHANNEL 23,06%
2 COMEDY CHANNEL 14,04%
3 MNC ENTERTAINMENT 12,84%
4 FOX CRIME 10,24%
Rank Business Channel Channel Share
1 IDX CHANNEL 93,34%
2 CNBC ASIA 6,66%
MNC Channels;
30,95%
Other Channels;
69,05%
MNC Channels’ Total Market Share for Pay TV
iNews TV the Largest National Network TV
29
• iNews TV was launched on April 6th 2015
• Focusing on 24 hours news, entertainment and sports
Total : 58 Stations Nationwide
32
Financial Performance from FY2013 until FY2016 (Audited)
Source: Company Financials
FY2013 to FY2016 Financials
FY2013 to FY2016 Solvency Metrics
IDR trillion
6,52
2,72
9,62
7,746,67
2,78
13,61
9,40
6,44
2,40
14,47
9,57
6,73
2,62
14,26
9,57
Revenue EBITDA Assets Equity
2013
2014
2015
2016
24%
66x
42%45% 48x
42%
51%
12x
37%
51%
14x
39%
Debt/Equity EBITDA/Interest EBITDA Margin
2013
2014
2015
2016
MNCN FS Q1-2017 VS Q1-2016
33
Income Statements (In IDR Bio) Q1-2017 Q1-2016 YoY
Revenues 1,609.6 1,538.7 5%
EBITDA 620.5 577.1 8%
EBITDA Margin 39% 38%
Net Income 419.0 479.6 -13%
Net income margin 26% 31%
34
Strong revenue growth with increasing EBITDA Margins
Room For Further Margins Improvement
Source : Company information
EBITDA margins (FY2011A – Q1/FY2017A; FY2020E)
33%
38%
42% 42%
37%38%
37%39%
44%
2011A 2012A 2013A 2014A 2015A 2016A 1Q2016 1Q2017 2021E
35
Hary Tanoesoedibjo
President Commissioner
Founding shareholder and Group Executive Chairman of PT Bhakti Investama Tbk. since 1989
Currently holds positions in several other companies, including Group President & CEO of PT Global Mediacom Tbk. since
2002, President Commissioner of RCTI since 2008, President Commissioner of PT MNC Sky Vision (Indovision), President
Commissioner of Media Nusantara Informasi since 2008, President Commissioner of MNC Networks since 2008, President
Commissioner of MNC Pictures since 2007, and many other companies within MNC Media and Bhakti Investama Group
MBA degree from Ottawa University, Canada
Bachelor of Commerce (Honors) degree from Carleton University, Ottawa, Canada
David Fernando Audy
CEO Director of PT Global Mediacom Tbk since 2012. Also the President Director of PT Global Informasi Bermutu since 2010 and PT
Linktone Indonesia since 2011
Previously held several important positions such as the Managing Director of PT Media Nusantara Informasi, as Senior
Manager Corporate Finance then as Head of Investor Relations of PT Media Nusantara Citra Tbk
Previously worked at PT Elektrindo Nusantara from 2005 to 2006 and PT Mobile-8 Telecom Tbk from 2003-2005
Master of Commerce in Professional Accounting from the University of New South Wales and a Bachelor of Commerce in
Finance and Information System from the University of New South Wales
Faisal Dharma Setiawan
CFO CEO of PT Asuransi Jiwa Adisarana WanaArtha in 2012, Vice CFO – Strategy & Finance in PT Bank CIMB Niaga Tbk. in 2009
Commissioner in PT CIMB Sunlife and PT Asuransi CIGNA in 2009
AGM in PT Indo Kordsa Tbk in 2000, Director of Pension Funds Indo Kordsa Director in 1996
Graduated from Prasetya Mulya, Graduate School of Management with “MM” degree in International Business in 2001
Graduated from Universitas Katolik Parahyangan with Civil Engineer Degree (Bachelor Degree) in 1984
Ella Kartika
Director Managing Director in PT Global Informasi Bermutu in 2013
Programming & Production Director in PT Rajawali Citra Televisi Indonesia in 2011
Programming & Production Director in PT Global Informasi Bermutu in 2010
Sales & Marketing Director in PT Global Informasi Bermutu in 2008
Obtained Master of Management Program from University of Indonesia majoring in Finance & Banking in 1998
Kanti Mirdiati Imansyah
Director Director Sales and marketing of RCTI from 2010 – 2012, GM Sales and Marketing manager and Director Sales and Marketing
of CTPI from 2006-2010
AVP Sales and Marketing of Duta Visual Mandiri from 2003-2006, Head of Acquisition Manager of RCTI from 2002 – 2003
Sales Group Head Trans TV from 2000 – 2003, Sales Group Head & Account Executive1990 – 2000
Bachelor Degree of Science from La Jolla Academy of Advertising Arts and Associate Degree Fashion Merchandising from IFS
San Diego, USA
Highly Qualified and Experienced Management Team
36
Angela Tanoesoedibjo
Director
Managing Director of PT. Global Informasi Bermutu since 2014
Director of PT Megah Group since 2013 and MNI Entertainment since 2008.
Co-Vice President of MNC Channels in 2013
Corporate Finance & Business Development in 2010 – 2013.
Bachelor of Arts in Media Arts and Production from The University of Technology, Sydney and Master of Commerce in Finance
from The University of New South Wales, Australia.
Arya M. Sinulingga
Director President Director in PT Hikmat Makna Aksara (Sindo Weekly) in 2008
Corporate Secretary in PT Global Mediacom and PT Media Nusantara Citra in 2008 and 2010
Chief Editor in Global TV in 2011
Graduated from ITB (Institut Teknologi Bandung) with Bachelor of Civil Engineering degree in 1995
Gwenarty Setiadi
Independent Director
Director of Human Resources and General Services in PT MNC Sky Vision Tbk in 2009, GM Human Resources and General
Services in PT Media Nusantara Citra Tbk in 2008.
Vice President (VP) in Citibank for Human Resources and General Services in 2007, Head of Direct Sales Training Academy &
HRRM in 2005, Outsourcing Management Head in 2004
Graduated from University of Satya Wacana with Bachelor degree in Agronomy in 1982
Highly Qualified and Experienced Management Team
For further information, please contact Investor Relations Division:
Tallytha [email protected]
Christy Kusuma [email protected]
David F. [email protected]
PT Global Mediacom TbkMNC Tower 29th Floor
Jl Kebon Sirih No.17-19Jakarta 10340, Indonesia
Tel: 62-21 3913338Fax: 62-21 3910454
Website: www.mncgroup.com