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 potentialPrice 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 advertisingLocal brands have been aggressive in advertising to compete with multi national companiesWe 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 2016

  Media 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 ANIMATION

DRAMA/ 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 IndonesiaOur customers prefer local contentProducing 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.17-19

  Jakarta 10340, Indonesia Tel: 62-21 3913338 Fax: 62-21 3910454 Website: www.mncgroup.com