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PT Media Nusantara Citra Tbk.

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Presentation on theme: "PT Media Nusantara Citra Tbk."— Presentation transcript:

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

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

4 Indonesia’s Media Industry Update
Section1 Indonesia’s Media Industry Update

5 Macro drivers support industry growth
Population (2012) A Young Population : 80% - Below 50yr What are the macro drivers? Millions 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. Source: Indonesia Bureau of Statistics 2012 Source: MPA 2011 Completed Education Level Monthly Household Expenditure (Rp1,000) Source: Indonesia Bureau of Statistics 2012 Source: Nielsen Media Research

6 Indonesia’s ad spend growth highest in region
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 Asia Pacific Net Adspend Growth ( F) Asia Pacific Net Adspend (2011 – 2013F) In USD billion Source: Media Partners Asia 2012

7 Well Positioned in a Conducive Growth Environment
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 Net Adspend as a Percentage of GDP (2011) Price of 30 seconds prime time spot in the region In USD/spot Source: Media Partners Asia 2012

8 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 10 FTA TV stations Demand (More brands advertising on TV) Source: Nielsen Prime time all demographic May 2013

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

10 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 2012 2016F Source: Media Partners Asia 2012

11 Section 2 MNC Update

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

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 MNC ad revenue growth outperforming the industry
Dominant TV Player in Indonesia MNC ad revenue growth outperforming the industry MNCTV is under earning VS competitors Opportunity for ad rate increases RCTI has consistently been the # 1 TV station in Indonesia since its inception in 1989. 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 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 2012 advertising revenue growth

15 Content is King 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 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 Primetime Nielsen TV stations ranking Source: Nielsen Monthly Prime Time All Demographic Audience Share

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

17 MNC Drama Series occupied 6 out of 10 spots
Top 10 Drama Series April 2013 Station Rating Share 1 TUKANG BUBUR NAIK HAJI THE SERIES RCTI 5.7 24.1 2 BERKAH MNCTV 3.9 17.9 3 RADEN KIAN SANTANG 3.8 17.5 4 CINTA 7 SUSUN 3.3 15.6 5 YANG MUDA YANG BERCINTA 3.2 18.9 6 HEART SERIES 2 SCTV 2.7 15.1 7 TENDANGAN SI MADUN SEASON 3 2.5 10.3 8 SI BIANG KEROK KECIL 10.8 9 PESANTREN & ROCK N ROlLL 3 2.3 11.0 10 USTAD FOTOCOPY 11.1 RCTI – dominant leader for Sports programs, MNCTV on animation

18 Other Top Reality TV Series
RCTI – dominant leader for Sports programs, MNCTV on animation

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 Sports Movies Lifestyle News Entertainment Kids Soon Local content RCTI – dominant leader for Sports programs, MNCTV on animation means it is the leader in its Pay TV category

20 Pay TV Channels to drive ad revenue for MNCN
OPPORTUNITIES MNC Channels share of Pay TV audience in 1Q 2013 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 Rank Sports Channel Channel Share 1 MNC Sports 2 4.12 2 MNC Sports 1 2.83 3 Star Sports 2.19 4 Fox Sports 0.80 Rank News Channel Channel Share 1 MNC News 1.68 2 Al Jazeera 0.04 3 BBC 0.02 4 CNN 0.01 Rank Lifestyle Channel Channel Share 1 MNC Infotainment 2.72 2 MNC Lifestyle 2.10 3 Asian Food Channel 0.46 4 Fashion TV 0.26 Rank Music Channel Channel Share 1 MNC Music 2.06 2 Channel V 0.18 3 NGC Music 0.36 4 Trace 0.01 Rank Entertainment Channel Channel Share 1 S-One 4.73 2 MNC Entertainment 4.43 3 Fox Channel 1.87 4 AXN 1.50 Rank Business Channel Channel Share 1 MNC Business 0.32 2 Bloomberg 0.00 3 CNBC Asia Source : Nielsen TV Audience Measurement 1Q 2013 20

21 Strong Market Position with Superior Content Capabilities (cont’d)
Strong Presence in Print Media Strong Market Position with Superior Content Capabilities (cont’d) Leading Radio Stations in Indonesia 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 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 Wave #4 2010 Total Audience in Jakarta 1 SINDO RADIO 2 DELTA 3 PAS 4 SMART < 1.000 1 ARH GLOBAL 2 MUSTANG 3 PRAMBORS 4 99ERS FM 1 RDI 2 BENS 3 GEN FM 4 MEGASWARA Source: Nielsen Media Index, figures refer to circulation in Jakarta only Source: Nielsen Media Research

22 Highly Qualified and Experienced Management Team
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 Director of GlobalTv from 2009 – 2012. 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 24 years of relevant 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

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

24 Financial Performance from 12M 2010 (Audited) until 12M 2012 (Audited)
12M 2010 to 12M Financials IDR trillion CAGR +5% CAGR +16% CAGR +14% CAGR +30% The various strategic initiatives discussed earlier has allowed MNC to register impressive financial performance since its inaugural bond issue in 2006. Our key financial indicators have posted stellar CAGR in excess of 20% in the last 4 years. In particular, EBITDA has grown by CAGR of 38% and equity has increased with a CAGR of 43% over this period. The strong financial performance has consequently led to a marked improvement in the company’s key credit ratios. Most importantly, debt to EBITDA has improved to 1.1x at end April 2010 from 3.6x at end EBITDA interest coverage has strengthened and the company has managed to lift EBITDA margins to over 30% for the four months ended 30 April 2010. 12M 2010 to 12M 2012 Solvency Metrics Source: Company Financials 24

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

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

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

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

29 EBITDA Contribution By TV Network EBITDA Contribution By TV Network
EBITDA Per Segment 4M 2013 & 4M 2012 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)
IDR billion 12M 2011 12M 2012 %chg 4M 2012 4M 2013 Revenue 5,390 6,265 16% 1,804 1,888 5% Advertising 4,418 5,351 21% 1,549 1,728 12% Content 93 197 111% 18 38 Value Added Services 536 217 -60% 143 -100% Others 343 500 46% 94 121 29% Operating expenses 3,808 4,050 6% 1,314 1,247 -5% Total EBITDA 1,863 2,518 35% 695 802 15% Total EBITDA Margin 40% 39% 42% Net Income 1,070 1,657 55% 461 576 25%

31 Thank You


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