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Corporate Update June 2013 PT Media Nusantara Citra Tbk. Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN

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Presentation on theme: "Corporate Update June 2013 PT Media Nusantara Citra Tbk. Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN"— Presentation transcript:

1 Corporate Update June 2013 PT Media Nusantara Citra Tbk. Listed and traded on the Indonesia Stock Exchange STOCK CODE: MNCN

2 2 Disclaimer By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information and opinions contained in this presentation are intended solely for your personal reference and are strictly confidential. The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation. In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company'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. This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company. Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.

3 Section 1 Section 2 Section 3 Table of Content Indonesia’s Media Industry Update MNC Update Financial Update MNC

4 Section1 Indonesia’s Media Industry Update

5 Macro drivers support industry growth 5 Millions Population (2012) Source: MPA 2011 A Young Population : 80% - Below 50yr Source: Indonesia Bureau of Statistics 2012 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  36mn 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?

6 6 Asia Pacific Net Adspend (2011 – 2013F) Source: Media Partners Asia 2012 In USD billion Asia Pacific Net Adspend Growth ( F)  Media Partners Asia forecasts net ad spend growth of 15.8% in 2013  Growth is among the highest in the region  Indonesia’s ad spend is growing from a small base; we expect growth to be sustainable Indonesia’s ad spend growth highest in region

7 7 Net Adspend as a Percentage of GDP (2011) Source: Media Partners Asia 2012 In USD/spot Price of 30 seconds prime time spot in the region  Net adspend as % of GDP is the lowest in the region indicating solid growth potential  The price for a 30 seconds prime time spot is cheap compare to other ASEAN countries Well Positioned in a Conducive Growth Environment

8 8 Demand (More brands advertising on TV)  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 Source: Nielsen Prime time all demographic May 2013 Limited supply: Only 10 FTA TV stations Industry Dynamics

9 9 Source: Media Partners Asia 2010 Asia Pacific TV Penetration of Total Households (2010F-2014F) Low Penetration Rates in Key Segments Millions Internet Household Penetration in Indonesia Newspaper Circulation in Indonesia

10 10 Indonesia’s Media Advertising Market Share 2016F Source: Media Partners Asia  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

11 Section 2 MNC Update

12 The Largest Integrated Media Company in Indonesia 12 RCTI Radio MNCTV Global TV MNC Pictures Tabloid & Magazine MNC Networks Star Media Nusantara MNC Channels Content llibrary contains more than 130,000 hours and increasing by more than 15,000 hours per year Sindo Media Others Free-To-Air TV Tabloid & Magazine News Portal Local TV Network Newspaper Radio Sindo Weekly More channels will be added Content National & Regional

13 13 Our 4 key growth drivers RCTI, the #1 TV station, will drive the overall industry growth Successfully turned around MNCTV; higher ad rates to follow. Focus to improve ratings at Global TV 17 exclusive channels on MNC Skyvision to generate ad revenue Rebrand 38 local TV stations as 4th national TV “SINDO TV”, launching Q2 13

14 14  RCTI has consistently been the # 1 TV station in Indonesia since its inception in  RCTI, MNC TV and Global TV cumulatively control 40% audience share during prime time  In 2012, our group experienced 22.0% advertising revenue growth, outperforming the industry growth rate of 15.5%, driven by RCTI and MNC TV  Change in programming strategy paid off at MNC TV. Viewership ranking jumped to #2 in 2012 from #6 in We see considerable scope for increased advertising revenue at MNCTV as ad rates are still much lower compare to RCTI  Focus is now to turnaround Global TV Dominant TV Player in Indonesia MNC ad revenue growth outperforming the industry 2012 advertising revenue growth Opportunity for ad rate increases MNCTV is under earning VS competitors

15 15 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, Indonesia Idol and X Factor  Exclusive programming with top Hollywood studios  More than 120,000 hours of content library and increasing by more than 15,000 hours annually  We also have 16 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 Source: Nielsen Monthly Prime Time All Demographic Audience Share Primetime Nielsen TV stations ranking

16 Talent Search 15/20 Animation 20/20 Housewives 14/20 Series 14/20 All Programs 16/20 Sports 16/20 Number of MNC’s Programs in the Top 20 for National FTA TVs (January to December 2012) 16 MNC’s TV Programs Dominate in all Genre Source: Nielsen


18 18 Other Top Reality TV Series

19 Sports Movies Lifestyle News Entertainment KidsSoon Local content 19 The most comprehensive Pay TV Channels lineup  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

20 Pay TV Channels to drive ad revenue for MNCN OPPORTUNITIES  MNCN has produced and packaged 17 Pay TV channels exclusively for MNC Sky Vision. In return MNCN receives 100% ad revenue  MNC Sports, MNC Entertainment, MNC News and MNC Business are # 1 ranked in their respective categories versus International peers  MNC Food & Travel was recently launched. We will add 3 more channels: MNC Kids, MNC Home and MNC Wedding  We expect MNC Channels to generate meaningful advertising revenue as subscribers grow 20 MNC Channels share of Pay TV audience in 1Q 2013 RankSports ChannelChannel Share 1MNC Sports MNC Sports Star Sports2.19 4Fox Sports0.80 RankNews ChannelChannel Share 1MNC News1.68 2Al Jazeera0.04 3BBC0.02 4CNN0.01 RankLifestyle ChannelChannel Share 1MNC Infotainment2.72 2MNC Lifestyle2.10 3Asian Food Channel0.46 4Fashion TV0.26 RankBusiness ChannelChannel Share 1MNC Business0.32 2Bloomberg0.00 3CNBC Asia0.00 RankMusic ChannelChannel Share 1MNC Music2.06 2Channel V0.18 3NGC Music0.36 4Trace0.01 RankEntertainment ChannelChannel Share 1S-One4.73 2MNC Entertainment4.43 3Fox Channel1.87 4AXN1.50 Source : Nielsen TV Audience Measurement 1Q 2013

21 Strong Market Position with Superior Content Capabilities (cont’d) 21  36 radio stations in 4 different formats consistently ranked #1 or 2 in their respective genres / targeted audience -Sindo Radio - #1 news station -Radio Dangdut Indonesia - #2 station for middle / low income segments -ARH Global - #1 choice amongst young listeners -V Radio – female radio station Leading Radio Stations in Indonesia Source: Nielsen Media Research  In 5 years following the launch in 2005, Seputar Indonesia has become the 2nd largest newspaper in Jakarta and the 3rd largest in Indonesia  The remaining 5 of the top 6 newspapers in Indonesia have been in circulation for more than 30 years on average  Tabloids / magazines published by us are popular among readers -Genie is the third largest tabloid by readership Strong Presence in Print Media Source: Nielsen Media Index, figures refer to circulation in Jakarta only Wave # Total Audience in Jakarta 1SINDO RADIO DELTA PAS SMART< RDI BENS GEN FM MEGASWARA ARH GLOBAL MUSTANG PRAMBORS ERS FM

22 22 Hary Tanoesoedibjo CEO, MNC Group 21 years of relevant experience  Group President & CEO of MNC since March 2004  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 Kanti Mirdiati Imansyah Director 23 years of relevant experience  Director Sales and marketing of RCTI from 2010 – 2012  GM Sales and Marketing manager and Director Sales and Marketing of CTPI from  AVP Sales and Marketing of Duta Visual Mandiri from  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 Jarod Suwahjo CFO, MNC Group 21 years of relevant experience  Director of GlobalTv from 2009 –  CFO PT Media Nusantara Citra Tbk from  Prior to joining MNC, Pak Jarod was a Financial Controller in Sanovi Adventis, GlaxosmithKline, National Food Juice and Heinz.  He is a Chartered Accountant from NZCA  Post Grad Diploma Accounting from Victoria University of Wellington (New Zealand)  Bsc in Operation Research from Victoria University of Wellington (New Zealand) Nana Puspa Dewi Director 24 years of relevant experience  Joined MNC in 2007 after spending 21 years in the consumer goods industry with major FMCG companies such as Procter & Gamble, Mars Inc., Mayora and Cadbury  Prior to joining MNC, Ibu Nana was Managing Director of Cadbury Indonesia  Has many years of experience in market research, sales & marketing and general management  Degree in Economy in Management from Udayana University, Indonesia Highly Qualified and Experienced Management Team

23 Section 4 Financial Update MNC (Audited FY 2011 & 12M 2012)

24 24 Financial Performance from 12M 2010 (Audited) until 12M 2012 (Audited) Source: Company Financials 12M 2010 to 12M 2012 Financials 12M 2010 to 12M 2012 Solvency Metrics IDR trillion CAGR +14% CAGR +30% CAGR +5% CAGR +16%

25 Segmental Overview – Revenue 25 12M M 2011 Split by TV Network

26 Segmental Overview –EBITDA 26 12M M 2011 Split by TV Network 16% 7% 77%

27 27 Financial Performance from 4M 2011 until 4M M 2011 to 12M 2013 Financials 4M 2011 to 4M 2013 Solvency Metrics

28 28 Segmental Overview – Revenue 4M 2013 & 4M 2012 Revenue 4M 2013 Revenue Contribution By TV Network Revenue 4M 2012 Revenue Contribution By TV Network

29 EBITDA Per Segment 4M 2013 & 4M EBITDA 4M 2013 EBITDA Contribution By TV Network EBITDA 4M 2012 EBITDA Contribution By TV Network 1%

30 Summary of Financial Performance FY 2011 & 2012 (Audited) – 4M 2012 & 4M 2013 (Unaudited) 30 IDR billion12M M 2012 %chg4M 20124M 2013%chg Revenue5,3906,26516%16%1,8041,8885% Advertising4,4185,35121%21%1,5491,72812% Content % % Value Added Services % % Others % % Operating expenses3,8084,0506%1,3141,247-5% Total EBITDA1,8632,51835% % Total EBITDA Margin35%40%40%39%42% Net Income1,0701,65755%55% %

31 Thank You

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