COMPANY PRESENTATION WORKPOINT ENTERTAINMENT PUBLIC COMPANY LIMITED 1Q13 ANALYST MEETING

Transcription

1 COMPANY PRESENTATION WORKPOINT ENTERTAINMENT PUBLIC COMPANY LIMITED 1Q13 ANALYST MEETING 1

2 DISCLAIMER Workpoint Entertainment Public Company Limited ( Work ) are pleased to provide this presentation which is intended for discussion purposes only. Although the information provided herein is believed to be reliable, Work makes no representation as to the accuracy or completeness of such information or otherwise provided by Boutique. Prior to acting on any information contained herein, the receiver should determine the risks and merits, including legal, tax and accounting characterizations and consequences without reliance on Work. This presentation and the content of any document relating thereto are proprietary to Work and may not be reproduced or otherwise disseminated in whole or in part without Work s prior written consent 2

3 INDUSTRY OVERVIEW 3

4 30,000 25,000 20,000 15,000 10,000 5,000-30,000 25,000 20,000 15,000 10,000 5,000 - ADVERTISING SPENDING Advertising Spending All Medias TV Media 1.3% Unit : MB Unit : MB 4.1% 26,018 26, % 3.9% 15,886 16,536 9,165 9,444 5,527 5,741 1Q2012 1Q2013 Apr-12 Apr-13 1Q2012 1Q2013 Apr-12 Apr-13 Source : AGB Nielsen Media Research 4

5 ADVERTISING SPENDING 1Q2012 1Q2013 6% 2% 2% 1% 4% 4% 5% 3% 2% 1% 5% 4% 14% 13% 61% 63% 5% 5% TV Radio Newspaper Magazines Cinemas Outdoors Transit In store Internet Source : AGB Nielsen Media Research TV Radio Newspaper Magazines Cinemas Outdoors Transit In store Internet 5

6 BUSINESS OVERVIEW 6

7 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% REVENUE STRUCTURE Revenue Contribution Other Income Concerts and Showbiz Animation and computer graphic TV Production Event Marketing Movie Publishing % 2.3% Q2012 2Q2012 3Q2012 4Q2012 1Q % 91.1% Q2012 1Q2013 1Q2012 1Q2013 7

8 (10.0) (20.0) TELEVISION PRODUCTION Revenue from TV Program Production % Unit : MB 80.0% 70.0% Free TV Revenue GOP GOP % Utilization % % 48.1% Unit : MB 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% % 10.0% 0.0% % 40.9% 50.0% 1Q2012 1Q % 64% % Satellite TV (WorkPoint TV) Unit : MB % Revenue GOP GOP % % 189.7% % 70.0% 60.0% 50-1Q2012 1Q2013 Revenue GOP GOP % 10.0% 0.0% % 1Q2012 (8.0) 1Q % 40.0% 30.0% 20.0% 10.0% 0.0%

9 Programs Arrangement TELEVISION PRODUCTION : FREE TV Jan 2013 Feb 2013 Mar 2013 May Q 2013 Air-time Based Air-time Based Sponsor Based Air-time Based Sponsor Based Air-time Based Air-time Based Sponsor Based Sponsor Based Air-time Based Sponsor Based Variety Show Sponsored by Big Consumer Brand 9

10 TELEVISION PRODUCTION : FREE TV Sunday

11 Plan & Performance TELEVISION PRODUCTION : SATELLITE TV As at the end of March 2013, Workpoint TV has unrealized revenue based on Ads contacts on hand at the amount of 100 MB. Programs will be re-arranged and replaced by contents in stock which will lead to cost reduction starting from July onward. Ranking in the past 3 months Workpoint TV Source : PSI Website No. Mar-13 No. Apr-13 No. May-13 1 CH-3 1 CH-3 1 CH-3 2 CH-7 2 CH-7 2 CH-7 3 CH-9 3 CH-6 3 CH-6 4 CH-5 4 CH-9 4 CH-9 5 GANG CARTOON 5 CH-5 5 CH-5 6 ASIA UPDATE 6 ASIA UPDATE 6 ASIA UPDATE 7 WORKPOINT TV 7 WORKPOINT TV 7 WORKPOINT TV 8 CARTOON CLUB 8 SABAIDEE TV 8 GANG CARTOON 9 SABAIDEE TV 9 GANG CARTOON 9 SABAIDEE TV 10 CH-6 10 CH-8 10 CH-8 11

12 TELEVISION PRODUCTION : SATELLITE TV New Satellite TV in Pipeline Channel 6 Start to sell Ads. in May 2013 after Test-run in 1Q2013 Currently, broadcasting through PSI channel 6, True Vision channel 30, True HD channel 45 New Satellite TV Channel Expect to launch in Aug 2013 Additional costs will be minimal as the programs will be mainly used from contents in stocks. 12

13 EVENT MARKETING Revenue from Event Marketing Events in Pipeline Unit : MB 80.0% TV Production for 3 rd Parties % 60.0% 2Q13 3Q13 3Q13 4Q13 3Q13 4Q % 25.2% % 40.0% 30.0% 20.0% Event Organizer Plan to have at least 5 more big events in 3Q13 4Q % 0.0% 1Q2012 1Q2013 Revenue GOP GOP % 2Q13 2Q13 13

14 CONCERT & MOVIE Revenue from Concerts and Showbiz % 100.0% Unit : MB 90.0% 80.0% 70.0% No Concerts and Showbiz in 1Q % 50.0% 40.0% Plan to have 2 Events in 3Q13 4Q % - 1Q2012 1Q2013 Revenue GOP GOP % Revenue from Movie 30.0% 20.0% 10.0% 0.0% Unit : MB % 70.0% No Movie in 1Q % Plan to have 3 movies in 3Q13 4Q % % 30.0% YAK animation movie will launched in china in 6,000 theatres in 3Q Q2012 1Q % 10.0% -4.0 Revenue GOP GOP % 0.0% 14

15 FINANCIAL HIGHLIGHT 15

16 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% FINANCIAL HIGHLIGHT Revenue & Net Profit Unit : MB Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Rev. EBITDA Net Profit Dep.&Amor. EBITDA & Net Profit Margin %EBITDA %NP 39.2% 33.6% 27.6% 17.4% 26.7% 22.5% 12.5% 21.2% 9.1% 8.0% 1Q2012 2Q2012 3Q2012 4Q2012 1Q

17 14, , , , , , , FINANCIAL HIGHLIGHT 2, , , , ,200.0 Total Assets and Total Equity Unit : MB 1, , , , , , , , , , D/E Ratio 1, Q2012 2Q2012 3Q2012 4Q2012 1Q2013 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Cash on hand Unit : MB Market Cap. Unit : MB 1, , , , , , Q2012 2Q2012 3Q2012 4Q2012 1Q2013 1Q2012 2Q2012 3Q2012 4Q2012 1Q

18 DIGITAL TV Regulation on the method for Digital TV Auctions (Commercial Channel) Regulation Auction Winner Payment Criterion Network Expansion Forward Auction Method 1 MB per application form per channel Deposit 10% of license reserve price 60 minutes Auction or until has a winner Channel Owner Can choose Channel Number Can choose Network Provider following the winner Reserve price 4 payments Year % Year 2 30% Year 1 50% Surplus of the reserve price (6 payments) Year % Year 1 Year 2 Year 3 50% 80% 90% Return deposit to unsuccess bidder within 30 days Year % Year 4 100% 18

19 Q&A 19

20 THANK YOU 20

21 APPENDIX 21

22 COMPANY BACKGROUND 22

23 MAJOR DEVELOPEMENT Founded by Mr. Phanya Nirunkul and Mr. Prapas Chonsaranon in 1989, with the aspiration to be the leading TV production company which can create the high quality TV shows Expanded the business into the publishing business in 2003 Converted the company status from limited company to Public Company and listed in the Stock Exchange of Thailand in 2004 Entered into the JV partnership with many groups of media professionals and expanded the business into various media sectors TV drama/sitcom Movies Animation Sound Studio Expanded the business into Concerts/ Showbiz Event Marketing Expanded the business into Satellite TV Workpoint, first satellite, started broadcasting in Feb

24 TV Production COMPANY GROUP STRUCTURE Event KumKubKarnDee Co. Ltd. Paid Up Capital : 5 MB 60% 50% Publishing Flagship Entertainment Co. Ltd. Paid Up Capital : 4 MB Toh Gloam Co. Ltd. Paid Up Capital : 10 MB 60% 100% Work Point Publishing Co. Ltd. Paid Up Capital : 10 MB Animation Bang Fai Studio Co. Ltd. Paid Up Capital : 10 MB 60% 60% It-ti-rit House Co. Ltd. Paid Up Capital : 20 MB Paid Up Capital : 257 MB Movie Six Degree Production Co. Ltd. Paid Up Capital : 5 MB 80% 100% Workpoint Pictures Co. Ltd. Paid Up Capital : 30 MB Sound Studio Freesize Broadcasting Co.,Ltd. Paid Up Capital : 25 MB 50% 60% Ground Co. Ltd. Paid Up Capital : 2 MB 24

25 PHILOSOPHY & CORE STRATEGY Workpoint s Philosophy With the great creativity and innovation, Workpoint aspires to be the leader in the entertainment and Media industry in Thailand and South East Asia Workpoint s Core Strategy Create & Develop Good Contents Maintain the best quality 25

26 BROADCASTING IN THAILAND Existing New Terrestrial Analog DVB-S (Satellite) Cable DVB-T (Digital) FREE To AIR FREE /PAY TV FREE/PAY TV FREE To AIR 3% 2% 9% : 22.6 MHH 86% MHH 45% 2.03 MHH 9% MHH : Million Households 7.9 MHH 35% 2.49 MHH 11% Terrestrial analog Cable DVB-S (Satellite) True Source : AGB Nielsen Media Research 26

27 BROADCASTING IN THAILAND Satellite and Cable TV Breakdown : 12.7 MHH Satellite TV Breakdown : 10.3 MHH 1.95 MHH 14% 1 MHH 7% 2.43 MHH 17% 0.81 MHH 6% 0.1 MHH 1% 8 MHH 56% 1% 9% 14% 7% PSI 70% Cable TV Breakdown : 2.4 MHH RS GMM TRUE Other 14% Local Cable+CTH PSI RS TRUE GMM Local Cable+CTH TRUE Other 86% MHH : Million Households Source : AGB Nielsen Media Research 27

28 TELEVISION PRODUCTION Sale of Airtime Sources of Revenue Product Placement and Tie In (Direct commercial Ads in TV programs) Product Placement Main sponsor Branded Content 28

29 TELEVISION PRODUCTION : FREE TV No. of TV Programs and Broadcasting Time 73% 74% 82% ,250 1,300 1, & 2012 Utilization Rate % 90% 88% 81% 83% 69% 64% 60% 1, , ,091 1,070 1,100 1,050 Q1 Q2 Q3 Q4 Revenue by Free to Air Channel 5-1, No. of TV Programs Broadcasting Time (mins per week) % 21% 48% CH 3 CH 5 CH 9 Utilization Note : The number of TV Programs in each year represented the outstanding TV programs at the end of each year and not included the TV programs which were broadcasted during the year. 29

30 TELEVISION PRODUCTION : FREE TV Revenue Break Down Revenue by Source of Income Revenue by Type of Time Slot 36% Sale of Air Time Product Placement 77% 23% Time Sharing Fixed Rent 64% GOP Margin 65% 63% Time Sharing Fixed Rent Exclude : Salary & Benefits 30

31 Top Workpoint s TV programs on Free TV TELEVISION PRODUCTION : FREE TV CHING ROY CHING RAN Sunshine day Sun : 3 PM 5 PM (120 mins/week) Game Show RABEAD THENG THEAL THONG Sun PM 1.25 PM (85 mins/week) Sitcom KON AUD PEE Wed PM AM (105 mins/week) Variety RATCHAROD MA KRAY WED FRI : 6.00 PM 6.45 PM (135 mins/week) Quiz Show WITTAYA SUBPHAYUTH Sat : 6.00 PM 6.55 PM (55 mins/week) Game Show 31

32 TV HOSTS & SHOWS Number of TV Host > 18 people : Number of 23 (Free TV + Workpoint TV) Unit : Shows 2011 % to Total Show 2013 % to Total Show K. Phanya % 2 8.7% K Krid 1 7.1% % K Pla Koong 0 0.0% % K Jui 1 7.1% 2 8.7% Na Nake 1 7.1% 2 8.7% As at the end of Feb

33 PROGRAM IN 2013 Prime Time Second Prime Time Non-Prime Time Week end Avg. Ads rate Unit : Per Minute 2013 Prime Time 330, Weekends 310,000 33

34 TELEVISION PRODUCTION : WORKPOINT TV run 3 12 run 2 Own Production 1 hours Own Production 2 hours Content Partnership 1 hours Acquired License 2 hours Re-Broadcasting 4 hours Partnership 2 hours Acquired License 2 hours Re-Broadcasting 6 hours Ads Rate 6,000 10,000 10,000 15,000 34

35 TELEVISION PRODUCTION : WORKPOINT TV DVB-S (Satellite) PSI (Channel 7) GMM,RS, True,Other Cable Local Cable + CTH TRUE (Channel 66,89) 35

36 TELEVISION PRODUCTION : WORKPOINT TV Top 5 Workpoint s TV programs on Workpoint TV BILLIONAIRE INVENTOR Mon : 7.30 PM 8.30 PM (60 mins/week) REW LIVE Fri : 4.05 PM 4.45 PM (40 mins/week) THE SNAKE Wed : 8.30 PM 9.30 PM (60 mins/week) KENG SOO KENG Thu : 8.30 PM 9.30 PM (60 mins/week) TV CHAMPION Tue : 8.30 PM 9.30 PM (55 mins/week) 36

37 NEXT STEPS 37

38 NEXT STEPS Television Production : FREE TV Increase number of TV programs with good contents Increase Ads rate Number of TV programs 25 1,250 1, , , * * 1,400 1,200 1, Avg. Ads rate , No. of TV Programs Broadcasting Time (mins per week) Note : *As at the end of Feb Excluding the TV program produced by Subsidiaries. The number of TV Programs in each year represented the outstanding TV programs at the end of each year and not included the TV programs which were broadcasted during the year ,625 38

39 NEXT STEPS Television Production : New Channels in Satellite TV A 50:50 joint venture between WorkPoint and PSI Holdings Focus on content development for new free-to-air satellite TV channels The first channel will be launched in 1Q2013. All satellite-tv receivers will be able to access them, not just PSI set-top boxes. CAPEX : 100 MB Currently, satellite TV reaches about 65 per cent of the Kingdom's 22 million households. More than half of satellite TV viewers are PSI customers. 39

40 NEXT STEPS Other Businesses Publishing/Concerts & Showbiz : Focus mainly on positive margin items Movies Plan to launch 3 movies in 2013, including the movie sequels of successful films such as Event Marketing First Love 1 Box Office 74 MB Tukky 1 Box Office 63 MB Increase number of event projects and TV production for 3 rd parties 40

41 NEXT STEPS Television Production : Digital TV The timeframe of Commercial License bidding is expected to be in the 3Q2013 The Office of the National Broadcasting and Telecommunications Commission (NBTC) is planning to launch Digital TV by 4Q % switch from Analog TV to Digital TV within 2019 Original Option Public and Local 24 Channels Variety (HD) 4 Channels Commercial : 24 Channels Variety (SD) 10 Channels News 5 Channels Children 5 Channels +++ Must Carry Rule : Must be broadcasted in all Platforms +++ Proposed Option Public and Local 24 Channels Variety (HD) 7 Channels Commercial : 24 Channels Variety (SD) 7 Channels News 7 Channels Children 3 Channels +++ Must Carry Rule : Must be broadcasted in all Platforms

42 NEXT STEPS Television Production : Digital TV Workpoint in Digital TV : Key Success Factors WorkPoint TV can be broadcasted on Digital TV Platform immediately. Workpoint s high capability to create good contents. Must Carry Rule by NBTC increase the chance to catch more eyeballs which eventually can lead to higher Ads rate. Solid Financial Status for future investments. 42

43 AGE OF PROGRAMS & CONTRIBUTION Age of Program Avg 8 Years Unit : Years Revenue Contribution CHING ROY CHING RAN 24 CHING ROY CHING RAN 21.1% RABEAD THENG THEAL THONG CHING CHA SAWAN KHUN PRA CHAUY CHING ROI CHING LAN Ha TA LOK HOK CHAK RABEAD THENG THEAL THONG KON AUD PEE RATCHAROD MA KRAY WITTAYA SUBPHAYUTH BAN JAO PANYA FAN PAN TAE 12.1% 10.9% 9.9% 8.4% 7.5% 6.4% NHOO NOI KOO E JOO 5 TA LOK HOK CHAK 6.1% WONG KAM LHAO 3 CHING CHA SAWAN 6.0% KON AUD PEE 3 NHOO NOI KOO E JOO 4.4% WITTAYA SUBPHAYUTH 2 Other 7.1% % 5.0% 10.0% 15.0% 20.0% 25.0%