LIFESTYLE entertainment MAJOR CINEPLEX GROUP PLC. 3Q18 Analyst Meeting Paragon Cineplex, 12 th 1 November 2018
MAJOR CINEPLEX GROUP AGENDA FINANCIAL OVERVIEW P.3 FINANCIAL HIGHLIGHT RESULT REVENUE BREAKDOWN BY SEGMENT QUARTERLY REVENUE BREAKDOWN P.6 BALANCE SHEET SNAPSHOT STRATEGIC INVESTMENT GROWTH PROTENTIALS COMING ATTRACTION MOVIE LINE-UP EXPANSION PLAN P.4 P.5 P.10 P.11 P.13 P.15 2
LIFESTYLE entertainment IMAX FINANCIAL OVERVIEW 3
Q18 QUARTERLY BRIEFING Financial Highlights Bt.Million 3Q17 3Q18 Growth Amt. % Revenue 2,200 100% 2,048 100% (153) (7%) Gross Margin 712 32% 630 31% (82) (12%) EBITDA 682 31% 557 27% (125) (18%) EBIT 402 18% 272 13% (130) (32%) Net Profit 302 14% 206 10% (96) (32%) 3Q18 Net Profit decreased from extra gain in 3Q17 (1) Insurance claim from fire accident at Pinklao location 47 MB (2) Exchange rate from PVRL divestment 18 MB 4
3Q18 QUARTERLY BRIEFING Revenue Breakdown by segment Bowling & Karaoke Business 6% Rental & Service Business 5% Advertising Business 14% Concession Revenue 19% Movie Content 2% Admission Revenue 54% Major Group s Revenue Breakdown 3Q18 Margin Cinema 73% 23% Admission Revenue 54% 6% Concession Revenue 19% 69% Advertising Business 14% 82% Bowling & Karaoke Business 6% 37% Rental & Service Business 5% 8% Movie Content (Content Provider & Local Production) 2% 11% Total Revenue 100% 31% 5
36 113 101 107 123 89 284 411 398 345 2,200 2,048 1,142 1,099 3Q18 QUARTERLY BRIEFING Revenue Breakdown Total Revenue (7%) (153mb.) Admission Revenue (4%) (42mb.) Advertising revenue decreased from postponement of contract renewal Concession (3%) (12mb.) Advertising (18%) (61mb.) Bowling group +9% (+10mb.) Retails 6% +6mb. Movie Content (59%) (53mb.) 2015 2016 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 6
170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 3Q18 QUARTERLY BRIEFING Revenue : Admissions ATP & Guest Counts ATP Breakdown (THB) Guest Counts (Million) MPass+Comp. ATP (THB) 166 164 160 162 Bangkok & Vicinity Upcountry 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 29.7 31.9 7.9 7.5 0.3 0.6 7.6 6.9 149 149 142 141 178 176 176 184 2016 2017 3Q17 3Q18 2016 2017 3Q17 3Q18 Guest Counts Breakdown by Regional Cinema Breakdown by Regional Bangkok & Vicinity Upcountry Bangkok & Vicinity Upcountry 41% 43% 47% 49% 38% 39% 42% 43% 59% 57% 53% 51% 62% 61% 58% 57% 2016 2017 3Q17 3Q18 2016 2017 3Q17 3Q18 7
2,100 1,600 1,100 600 100 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 40% 35% 30% 25% 20% 15% 10% 5% 0% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 3Q18 QUARTERLY BRIEFING Revenue : Concession Concession Revenue & Margin Concession Revenue (THB) Margin (%) 68% 68% 69% 63% 1,665 1,443 411 398 2016 2017 3Q17 3Q18 % Con to Box Ratio Admission (Million) % Con to Box 31% 35% 36% 37% 29.7 31.9 7.9 6.9 2016 2017 3Q17 3Q18
0% 3Q18 QUARTERLY BRIEFING Revenue : Advertising 1,600 Advertising Revenue Advertising Revenue (Million) Margin (%) 86% 85% 87% 82% 1,400 1,200 1,000 800 600 400 1,287 1,395 345 284 200-2016 2017 3Q17 3Q18 Kids Movie Fun UNITRY THAILAND S PUBSTOMP 2018 Mini Marathon Package : HK Disneyland 9
ASSETS ASSETS 14000 12000 10000 8000 6000 4000 2000 0 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 3Q18 QUARTERLY BRIEFING Balance Sheet Snapshot Bt.million Dec 31,17 Sep 30, 18 %chg Assets 13,808 13,850 0% Liabilities 7,309 7,478 2% Equity 6,499 6,372 (2%) Dec 31,17 Sep 30,18 13,808 7,309 EQUITY LIABILITIES 6,499 13,850 7,478 0% 2% EQUITY LIABILITIES 6,372 (2%) Equity Net interest-bearing debts Net D/E 0.69 0.65 0.67 3,913 4,175 4,184 6716 6,402 6,255 3Q16 3Q17 3Q18 10
ASSETS EQUITY 3Q18 QUARTERLY BRIEFING Strategic investment and hidden profit Closing price as on 30 September 2018 Investments %Share Cost per Share Major s Cost Market Value Investment portfolio as of 30 th September, 2018: 26.03% in Siam Future Development Plc. (SF) 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF) 92.46% in M Pictures Entertainment Plc. (MPIC) 40.00% in Thai Ticket Major Co., Ltd. 69.97% in Major Platinum Cineplex Co., ltd. (Cambodia) 59.98% in Major Platinum Cineplex Co., ltd. (Lao) 99.99% in Cineplex (Lao) Sole Co., ltd. 49.00% in CJ Major Entertainment Bt.million Unrealized Gain (Loss) Siam Future 26.03% 4.43 2,047 4,046 2,000 MJLF 33.00% 10.00 1,089 1,383 294 MPIC 92.46% 1.67 2,003 2,044 41 Total 5,139 7,473 2,334 11
LIFESTYLE entertainment GROWTH POTENTIALS 12
MOVIE LINE UP 4Q18 Movie Attraction in 4Q18, Total 22 Thai Movies in 2H18 Bumblebee Aquaman Fantastic Beast and where to find them 2 Venom Ralph Breaks the Internet: Wreck-It Ralph 2 The Nutcracker and the Four Realms Johnny English 3 The Girl in the Spider's Web Robin Hood The Grinch Goosebumps 2 Mary Poppins Returns First Man Nakee - Drama Homestay - Thriller/Fantasy Khun Ban Lue - Comedy Possessed - Horror Gravity of Love - Romantic ThiBan The Series 2.2 - Comedy Nora - Drama Gatlang - Documentary Viral - Horror *Please note that release dates are subject to change. 13
MOVIE LINE UP 1H19 Movie Attraction in 1H19, Total 12 Thai Movies in 1H19 Avengers Infinity War Captain Marvel Shazam! Godzilla II: King of the Monsters Men in Black John Wick 3 Hellboy Spider-Man: Into the Spider-Verse Toy Story Aladdin Dumbo How to Train Your Dragon 3 The Secret Life of Pets 2 Alita: Battle Angel Glass Wonder Park The Lego Movie 2 Sin Sam Ton - Romantic/Comedy Friend Zone - Romantic/Comedy Pee Nak - Comedy/Horror White Shadow - Drama Inhuman Kiss - Romantic/Horror Estimate 12 Thai Movies in 1H19 *Please note that release dates are subject to change. 14
MAJOR CINEPLEX: EXPANSION PLAN MAJOR targets to expand 70-80 additional screens nationwide and international in year 2018, Most of the screens are located in upcountry area with Tesco Lotus and Big C (Hypermarket). MYANMAR LAOS VIETNAM CAMBODIA No. Location Screens Location BKK& No. Vicinity UPC Inter Opening Period 1 Big C Sukhothai (Opened 1 Feb) 2 133 X 2 Sahathai Nakhonsithammarat (Opened 7 Feb) 3 134 X 3 Lotus Phatthalung (Opened 13 Feb) 3 135 X 1Q18 4 Sripong Park Uttaradit (Opened 3 Mar) 3 136 X (13 Screens) 5 Big C Phang Khon - Sakon Nakhon (Opened 28 Mar) 1 137 X 6 Big C Kham Ta Kla - Sakon Nakhon (Opened 30 Mar) 1 138 X 7 Big C Chaiyaphum (Opened 1 Apr) 2 139 X 8 Big C Sattahip (Opened 4 Apr) 3 140 X 2Q18 9 Aoen Mall 2 - Phnom Penh (Opened 30 May) 8 141 X (15 Screens) 10 Lotus Suphan Buri (Opened 1 Jun) 2 142 X 11 Big C Nong Bua (Opened 15 Jul) 1 143 X 12 Lotus Kamphaensan (Opened 25 Jul) 2 144 X 13 Lotus Piboon Mang Sar Harn (Opened 16 Aug) 2 145 X 14 Lotus Khok Samrong (Lop Buri) (Opened 30 Aug) 2 146 X 15 Big C Nongki (Burirum) (Opened 31 Aug) 1 147 X 16 Lotus Si Sa Ket (Opened 28 Sep) 2 148 X 17 Lotus Ratchaburi 2 149 X 2H18 18 Asawann Nongkhai 2 150 X (~40 Screens) 19 Big C Ladyao (Nakhonsawan) 1 151 X 20 Lotus Uttaradit 2 152 X 21 Lotus Bang Pakok 3 153 X 22 Lotus Phayao 2 154 X 23 Big C Chiang Rai 4 155 X 24 Icon Siam 13 156 X 2Q12 2Q13 800 700 600 500 400 300 200 100 0 123 142 29 39 236 256 BKK & Vicinity Province International 290 316 344 354 361 479 520 383 413 50 71 89 86 94 114 119 185 209 678 710 628 280 319 347 116 123 207 217 240 245 255 268 267 269 294 294 304 336 343 338 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 15
1400 1200 1000 800 600 400 200 0 7.3 6.3 5.3 4.3 3.3 2.3 1.3 0.3-0.7 MAJOR CINEPLEX: EXPANSION PLAN CAPEX Highlight Manage cost 5.6MB/Screen in 2019 INTER 7.3 392 113 279 Branch CAPEX 6.6 919 AEON 2 187 ICON SIAM 260 472 5.6 280 280 2017 2018 2019F Normal CAPEX CAPEX/Scr (MB) Bt.million 2017 2018 2019F Total New Screen 47 84 50 Total CAPEX 392 919 280 CAPEX/Screen 7.3 6.6 5.6 2017E: 7.3 MB/screen, excl. INTER 9 screens 2018E : 6.6 MB/screen, excl. ICON SIAM 13 Screens 260 MB (4DX, IMAX) and AEON2 8 screens 187 MB (4DX, IMAX) 16
50% 40% 30% 20% 10% 0% -10% MAJOR CINEPLEX: EXPANSION PLAN Adjusted Return on Assets by screen opening Manage cost 6.6MB/Screen in 2018 Return On Assets 38% 12% -2% 2017 2018 Built 2017 Built 2018 Data as of Oct 18 2017E : CAPEX 7.3 MB/screen 2018E : CAPEX 6.6 MB/screen 17
LIFESTYLE entertainment MAJOR CINEPLEX GROUP PLC. 18