MNCN Corporate Update August 2017 final
Corporate Update August 2017 PT Media Nusantara Citra Tbk. Listed and traded on the Indonesia Stock Exchange STOCK CODE: BMTR MNCN MSKY
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MNC Media Corporate Structure Section 1
MNC Media Corporate Structure 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 Network Subscription Based Media
Online Media
87.6%* 100 % 100 %
- total group ownership is currently over 95%
Indonesia’s Media Industry Update Section 2
Macro drivers support industry growth Population (2016) A Young Population : 80% - Below 50yr What are the macro drivers?
65+ in millions
55-64
1,267 A large & young population
1,374 5%
7% 0-14
28% 200mn people below age of 50
31
23
258 103
6
68 A rising middle class
s d ia ia ia re lia n s ina d a 25-54 y
Strong economic growth driven h es ine po ila In tr a p
C a s 15-24 on p
43% u ili
Tha A ing Mal by domestic consumption h
17% Ind S
P Source: MPA 2016 Source: United Nations (2015)
60mn TV household
Only 4% of population has Completed Education Level Monthly Household Expenditure (Rp1,000) university degrees
University
E <600 A1 3500
Academy 4%
5% 6%
A2 2501-3% 22%
NA
Indonesians prefer to watch TV 3500 D 601-
9% 900 than to read, watching 5 hours
13%
Senior High of TV per day.
29%
B 1751- 2500 C2 901- 20%
1250
Elementary
21%
23%
C1 1251-
Junior High
1750
19%
26%
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
$80.000 Indonesia Malaysia Vietnam Thailand Philippines Singapore Australia
Source: Media Partners Asia 2016
0,5% 0,5% 0,5%
0,4% 0,3%
0,2% Vietnam Philippines Singapore Thailand Malaysia Indonesia
% of GDP
Industry Dynamics
Prime time advertising slots are limited; strong demand for advertising Local brands have been aggressive in advertising to compete with multi national companies We expect automotive and financial companies to increase TV advertising budget
Limited Supply : Only 11 FTA TV stations Limited Supply : Only 11 FTA TV stations Demand (More brands advertising on TV)
3% 10%
20,1 42%
MNCN SCMA
VIVA Trans
26% Others
Source: Nielsen All-Time all demography June 2017
Low Penetration Rates in Key Segments
Steady expansion of Indonesia advertising market
Net advertising market (US$bn)
3.2
3.0
2.9
2.7
2.5
2.3 2012A – 2022E CAGR
1,2
2.1 1,2
2.0 7.0%
2.0 1,1
1.8 (Total)
1,1 1,0
1.6 0,9 0,8
0,7 0,7 0,6
2012A 0,5
- – 2022E 6.0%
1,9
CAGR (TV)
1,9 1,8 1,7 1,6
1,5 1,4 1,3 1,3
1,2 1,1
2012A 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E 2022E TV Other
Low TV household penetration in Indonesia, relative to rest of Asia
Asia Pacific TV Penetration of Total Households (2016 and 2017) 100% 100% 100% 100% 100% 100% 100% 100% 99% 99% 99% 99%
98% 98%
97% 97% 89% 89% 87% 87%86% 85% 64% 64% 62% 62%
Korea Japan Singapore Australia Hong Kong Malaysia China Thailand Taiwan Vietnam Philippines India Indonesia
Source: Media Partners Asia 2016Media viewership in 2015 Consumer Media View 2015 (%)
TV
96 OOH
52 People Owning Smartphone (%)
Internet
38
30 Radio
16 Print
14 Cinema
10
14
12 2013 2014 2015
Source: Nielsen Consumer Media View 2015
32% 61% 71%
2011 2014 2015
3 hours 73% >3 hours 27%
% 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.
00.47
10.48
09.36
08.24
07.12
06.00
04.48
03.36
02.24
01.12
00.00
00.12
00.19
00.31
01.02
More People Are Watching TV Now Than a Decade Ago, and millennial will come around, too
01.39
00.49
00.48
00.58
01.54 00.08 00.09 00.10 00.14 00.14 00.12 00.13 00.09 00.05
01.51
01.52
00.32
00.33
00.33
04.51
04.34
04.31
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
US Advertising Market Share
FTA TV TIME SPENT IS STILL GROWING, WITH 35+ AGE
5.20 2006
Source: Nielsen, Universe %, 2006 (8 cities), 2011 (10 cities) and Jan – Sep 2016 (11 cities), all people 5+, All Time
18% 27% 17% 19% 18%
13% 21% 21% 23% 21%
Hr:M Hr:M
50+ 35 - 49 25 - 34 15 - 24 5 - 14
2016
4.18
4.34
4.58
4.21
4.53
4.25
4.37
4.26
4.29
OVER 90% OF ONLINE INDONESIANS REGULARLY
Simultaneous media consumption (TV + Online)
- – 2015 vs 2011
DUAL SCREEN
AGE
DUAL SCREEN – 2011- – 2015
TOTAL
45%94%
10’s
43% 93%
2 0’s
46%93%
30’s
96% 45% 47%
40’s
92%
50’s
0%88%
Source: Nielsen Cross Platform Report 2015, 16+
... AND THEY’RE MOST LIKELY TALKING ABOUT TV Participation in social TV activity during 2015 (among total online population)
INTERACTING WITH OTHERS OR
79% Within last 12 months
POSTING COMMENTS about TV Programs (Incl. Sports) or Movies as you are watching them, or about those
Weekly or more often 58% you watched recently READING OTHER PEOPLE’S
Within last 12 months 86% COMMENTS about TV Programs (Incl.
Sports) or Movies as you are watching them, or about those you watched 57%
Weekly or more often recently
Source: Nielsen Cross Platform Report 2015, 16+
Media Credibility and Popularity Print 10%
Social Media 14% News Portal 18%
Television 57% N/A 1%
Most Accessible % Print 14%
Social Media 5% News Portal 11%
Television 66% N/A 4%
Most Trusted % Source: Kompas Media Survey, May 15th 2017
Indonesia’s Media Advertising Market Share
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 2017
2022F
MNC Update Section 3
The Largest Integrated Media Company in Southeast Asia FREE-TO-AIR TV CONTENT SUPPORTING ENTERTAINMENT
IN HOUSE PRODUCTION UNITS
PRINT ANIMATIONDRAMA/ MOVIES/ FTV
TALENT SEARCH/ NEWS/RADIO
VARIETY/ SPORTS
RCTI, MNCTV, GlobalTV, iNewsTV MNC Sports
TALENT NEWS & SPORTS CONTENT LIBRARY PAY-TV CHANNELS
MANAGEMENT
Content library contains more than 300,000 hours and increasing by more than 15,000 hours per year
Our Key Growth Drivers 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 Vision to 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
4 IVM ABCD 9,8
10 METRO AB 1,8
9 TRANS ABC 4,1
8 TRANS7 ABC 5,7
7 TVONE ABC 5,8
6 GTV ABC 7,7
5 MNCTV ABCD 9,4
3 ANTV ABC 14,3
Indonesians love “Sinetrons” and we broadcast many of the top drama series
2 SCTV ABCD 15,8
1 RCTI ABC 23,8
Source: Nielsen Prime-Time All Demographic 5+ Audience Share Prime-Time Nielsen TV stations ranking Rank Station Target Audience Jun-17 Share
” “Content is King” by Bill Gates in 1996
“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.
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
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
11 INEWS AB 1,1
Top 20 Drama Series as of August 2017
• New comedy drama series produced by MNC Pictures “Dunia Terbalik” performed very
strong topping the program charts.- 6 out of the Top 20 program for June 2017 belongs to MNC
Top 20 Drama Series as of August 2017
Source: Nielsen, ALL DEMO, 5+Biggest producer of in-house content in Indonesia Integrated end to end programming strategy drives highest margins
- MNC produces over
15,000 hours of in house content every year. 41 hours per day! More than any competitors in Star Media MNC Animation Indonesia.
Nusantara
- Full control from talent
management to production to broadcast RCTI, MNCTV, GTV MNC Pictures and Sport Productions
- 4 in house production
divisions: The programming strategy allows RCTI to achieve industry leading 55% EBITDA margins.
MNC Has The Best Talent Search Format Lineup Pioneering the international scale talent search programs in Indonesia, such as th Indonesian Idol - 8 season and running, nd X-Factor Indonesia - 2 season and running, st Rising Star Indonesia - The 1 Season with interactive talent search programs rd MasterChef Indonesia - 3 season and running The Voice Indonesia – Aired February 2016 Our talent search programs are 3x more profitable than competing “In-house” dangdut singing competition
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 Sports Movies Lifestyle News Entertainment Kids Local content means it is the leader in its Pay TV category
Top 20 Most Watched Pay TV Channels for 2016 Source: AGB Nielsen Report
NO. CHANNEL
12 NGC WILD
3 CARTOON NETWORK
10 HBO
9 HBO HITS
8 MNC SPORTS
7 MNC MUSLIM
6 DRAMA CHANNEL
5 KIDS CHANNEL
4 NATGEO CHANNEL
2 DISNEY CHANNEL
13 FOX MOVIES PREMIUM
11 COMEDY CHANNEL
20 CELESTIAL MOVIES NO. CHANNEL
19 CHANNEL V
18 MOVIE CHANNEL
17 MNC NEWS
16 MNC INFOTAINMENT
15 MNC ENTERTAINMENT
14 CINEMAX
1 DISNEY JUNIOR
Pay TV Channels to drive ad revenue for MNCN OPPORTUNITIES MNC Channels share of Pay TV audience in 2016
Rank Sports Channel Channel Share Rank News Channel Channel Share MNCN has produced and packaged 22 Pay TV
1 MNC SPORTS 51,70%
1 MNC NEWS 50,822% channels exclusively for MNC Sky Vision. In return
2 FOX SPORTS 2 20,23%
2 BERITA SATU 37,15%
MNCN receives 100% ad revenue
3 FOX SPORTS 15,58%
3 7,18% MNC WORLD NEWS MNC Sports, MNC Infotainment, MNC News and
CNN
4 SOCCER CHANNEL 12,49%
4 4,86%
INTERNATIONAL
MNC Business, MNC Music Channel are ranked #1 in Rank Lifestyle Channel Channel Share Rank Entertainment Channel Channel Share their respective categories versus its International
1 MNC INFOTAINMENT 25,40%
1 DRAMA CHANNEL 23,06% peers
2 MNC LIFESTYLE 15,05%
2 COMEDY CHANNEL 14,04%
3 MNC ENTERTAINMENT 12,84% We expect MNC Channels to generate meaningful
3 TRAVEL LIVING CHANNEL 12,91%
4 FOOD AND TRAVEL 11,84%
4 FOX CRIME 10,24%
advertising revenue as subscribers grow Rank Business Channel Channel Share Rank Music Channel Channel Share
1 IDX CHANNEL 93,34%
1 CHANNEL V 54,68%
MNC Channels’ Total Market Share for Pay TV
2 CNBC ASIA 6,66%
2 MUSIC CHANNEL 45,32%
MNC Channels; Source : Nielsen TV Audience Measurement 2016
30,95% Other
Channels; 69,05%
iNews TV the Largest National Network TV Total : 58 Stations Nationwide th 2015
- iNews TV was launched on April 6
- Focusing on 24 hours news, entertainment and sports
Integrated Studio Facilities
Financial Update Media Nusantara Citra Section 4
Financial Performance from FY2013 until FY2016 (Audited) FY2013 to FY2016 Financials FY2013 to FY2016 Solvency Metrics
Revenue EBITDA Assets Equity 2013 2014 2015 2016
14x 39%
37% 51%
51% 12x
48x 42%
42% 45%
24% 66x
14,26 9,57
IDR trillion
6,73 2,62
14,47 9,57
6,44 2,40
13,61 9,40
6,67 2,78
9,62 7,74
6,52 2,72
Debt/Equity EBITDA/Interest EBITDA Margin 2013 2014 2015 2016
MNCN FS H1-2017 VS H1-2016
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% 40% 41% 44%
2011A 2012A 2013A 2014A 2015A 2016A H1-2016A H1-2017A 2021E
Highly Qualified and Experienced Management Team
CEO of PT Asuransi Jiwa Adisarana WanaArtha in 2012, Vice CFO
Bachelor Degree of Science from La Jolla Academy of Advertising Arts and Associate Degree Fashion Merchandising from IFS San Diego, USA
Sales Group Head Trans TV from 2000
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
Kanti Mirdiati Imansyah 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
Ella Kartika Director
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
Faisal Dharma Setiawan CFO
Hary Tanoesoedibjo President Commissioner
Finance and Information System from the University of New South Wales
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
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
David Fernando Audy CEO
MBA degree from Ottawa University, Canada Bachelor of Commerce (Honors) degree from Carleton University, Ottawa, Canada
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
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
- – Strategy & Finance in PT Bank CIMB Niaga Tbk. in 2009
- – 2003
- – 2003, Sales Group Head & Account Executive1990 – 2000
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
Thank You For further information, please contact Investor Relations Division: Tallytha Amanda tallytha.amanda@mncgroup.com
Christy Kusuma Atmaja christy.atmaja@mncgroup.com
David F. Audy david.audy@mncgroup.com
PT Global Mediacom Tbk MNC Tower 29 th
Floor
Jl Kebon Sirih No.17-19Jakarta 10340, Indonesia Tel: 62-21 3913338 Fax: 62-21 3910454 Website: www.mncgroup.com