IFESTYLE Quarterly Briefing MAJOR CINEPLEX GROUP PLC. Analyst Meeting Paragon Cineplex, 9 th November 2015
Q15 QUARTERLY BRIEFING Financial Highlights Bt.Million growth Amt. Bt.Million % 9M14 9M15 growth Amt. % Revenue 2,153 100% 2,189 100% 37 Revenue 2% 6,499 100% 6,605 100% 105 2% Gross margin 803 37% 739 34% (63) Gross -8% margin 2,418 37% 2,356 36% (61) -3% EBITDA 620 29% 696 32% 75 EBITDA 12% 1,827 28% 2,069 31% 242 13% EBIT 412 19% 465 21% 53 EBIT 13% 1,222 19% 1,412 21% 191 16% Net Profit 293 14% 343 16% 50 Net 17% Profit 879 14% 1,032 16% 153 17% Revenue growth from Blockbuster movies, New branches, increasing of guest count in Cambodia & price increased. Gross margin dropped mainly from Movie contents business & high costs from Blockbuster movies. Net profit improved from Efficiency expenses management. Profit from divestment in PVRL. High profit from portfolio.
Bt.million Q15 QUARTERLY BRIEFING Net profit & Margin Net Profit +17% (50mb.) 293 230 343 209-9% (21mb.) Net profit Excl. gain from divestment. Revenue +2% (37mb.) Gross margin dropped from; Cinema : from 12 branches expansion. Concession : from clearance sale (old bucket set). Advertising : from more movies events. Bowling : from performance dropped. Margins variance Admissions 18% 12% (6%) Concessions 71% 65% (6%) Advertising services 86% 85% (1%) Bowling group 37% 36% (1%) Rentals & services 19% 20% 1% Movie Contents 9% 12% 4% Consol 37% 34% (4%)
Bt.million 127 116 127 129 156 171 317 332 1,077 1,082 Q15 QUARTERLY BRIEFING Revenue Breakdown Revenue +2% (37mb.) Admissions +0.4% (5mb.) Concession +5% (16mb.) Advertising +3% (11mb.) Revenue growth in every businesses except Bowling business. Bowling revenue dropped from closed down 3 locations (34 bowling lanes, 45 karaoke rooms) and declined performance. Bowling group -9% (-12mb.) Retails +2% (3mb.) Movie Content +10% (15mb.)
Bt.million 352 330 384 395 417 571 1,007 1,031 853 3,333 3,475 956 6,499 6,605 Q15 QUARTERLY BRIEFING 9M15 Revenue Breakdown Revenue +2% (105mb.) Admissions +4% (142mb.) Concession +2% (24mb.) Advertising +12% (104mb.) 9M15 core businesses (Admission rev., Concession rev., Advertising rev.) performance still positive. Bowling group -6% (-21mb.) Retails +3% (11mb.) Movie Content -27% (154mb.) 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15
Bt.million Excl.Complementary 1,077 1,082 Q15 QUARTERLY BRIEFING Revenue : Admissions Sale No. of Screens No.of Screen Admissions sale +0.4%(5mb.) +67 screens +67 new screens (12 branches) Guest Count & ATP Q Q Q Q - Q Q Q Q Q Q Q Guest Count(million) ATP +11% (16bt.) -11% (0.8m) ATP increased from raise the ticket price and manage price tiers and promotion in each locations.
Bt.million 1,077 1,082 Q15 QUARTERLY BRIEFING Revenue : Admissions Sale : Thai movies under perform. Admissions sale +0.4% (5mb.) 900 800 700 600 500 400 300 200 100 - Admission sale by segment (Bt.million) 197 172 Thai Movie 838 845 Foreign Movies
Bt.million 317 332 Q15 QUARTERLY BRIEFING Revenue : Concession Concession sales growth from popular bucket sets Concession sale +5% (16mb.) Margin dropped from clearance sale (old bucket set) Concession Sales %Concession margins 65% 70% 71% 69% 71% 70% 65% 452 436 238 317 315 262 332 Chart Title 1Q14 2Q14 4Q14 1Q15 2Q15 Concession Sales %Concession margins
Bt.million Q15 QUARTERLY BRIEFING Revenue : Advertising Advertising sale +3% (11mb.) Revenue growth from movie highlight, expansion screens and sponsor of film production (โจห วแตงโม) Gross margin dropped from more movies events. 500 450 400 350 300 250 200 150 100 50 0 1Q14 2Q14 4Q14 1Q15 2Q15 Advertising revenue Margin
Bt.million 127 116 Q15 QUARTERLY BRIEFING Revenue : Bowling Group Revenue dropped from 3 locations closed down and Activity Bowling world tour postponed. 400 60% Gross margin improved from 2Q15 by efficiency cost management. 350 50% Bowling group sale -9% (-12mb.) 300 250 200 150 100 50 35% 35% 37% 36% 28% 31% 36% 111 113 127 129 104 110 116 40% 30% 20% 10% 0 0% 1Q14 2Q14 4Q14 1Q15 2Q15 Bowling group revenues margins
Bt.million 127 129 Q15 QUARTERLY BRIEFING Revenue : Retails Revenue increased at Center point - Ratchayothin and Mini mall at Aomyai and raised the price at Metropolis. Occupancy increased from 90.5% to 91.4% Gross margin maintained. 300 250 200 Retails sale +2% (3mb.) 150 100 50 128 129 127 136 132 133 129 - - - - 0-1Q14 2Q14 4Q14 1Q15 2Q15 Rental&services Rev. margins
Bt.million 156 171 Q15 QUARTERLY BRIEFING Revenue : Movie Contents Revenue growth from increasing sale agent for home. +48%(43mb.) Movie content sale +10% (15mb.) -25%(-10mb.) -69%(-13mb.) -86%(-5mb.) Sales of VCD and DVD Film rights distribution Film Production Others Q Q
ASSETS EQUITY ASSETS EQUITY LIABILITIES LIABILITIES Q15 QUARTERLY BRIEFING B/S Snapshot Bt.million Dec 31,14 Sep 30,15 %chg Assets 13,932 14,224 2.1% Liabilities 7,546 7,692 1.9% Equity 6,387 6,533 2.3% 13,932 Dec 31,14 Sep 30,15 7,546 14,224 7,692 6,387 6,533 Loan increased from expansion branch. Net interest-bearing debts Equity Net D/E Net interest-bearing debts Equity Net D/E 18,000 0.70 16,00018,000 0.60 0.62 14,000 0.51 16,000 0.42 0.40 12,000 14,000 10,000 12,000 8,000 10,000 6,000 4,000 8,000 0.90 0.70 0.65 0.70 0.70 0.56 0.42 0.34 0.50 0.50 0.30 0.30 0.10 0.10-0.10-0.30 2,000 6,000-0.10 0 4,000 2011 2012 2013 2014 1Q15 2Q15 2,000-0.50-0.30
t with relationship ID rid2 rid4 was not found in the file. ASSETS Q15 QUARTERLY BRIEFING Investments Portfolio vs. Interest-bearing debts Bt.million Bt.million Investments %Share (as of 3 Nov'15) Cost per Share Market value* Major's Cost Gain(Loss) Interest-bearing debts Sep 30,15 Siam Future 23.29% 2.60 2,482 1,074 1,408 MJLF 33.00% 10.00 1,492 1,089 403 MPIC 92.46% 1.67 1,827 2,003 (176) PVRL 3.95% 120.45 783 221 562 Total 6,585 4,387 2,198 *% Share & Closing price on 3 Nov'15 13,932 7,546 14,224 Sep 30,15 7,692 Bank OD & ST loans 2,442 CP of LT borrowings 910 LT borrowings 309 Debentures 1,000 Total 4,662 Investment portfolio as of 3 Nov,2015: 92.46% in M Pictures Entertainment Plc. (MPIC) 23.29% in Siam Future Development Plc. (SF) 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF) 40.00% in ThaiTicketMajor Co., Ltd. 3.95% in PVR Limited (PVRL) 49.00% in PVR blu-o Entertainment Limited 70.00% in Major Platinum Cineplex Co.,ltd.(Cambodia) EQUITY LIABILITIES 6,387 6,533
IFESTYLE GROWTH POTENTIALS
GROWTH POTENTIALS Blockbuster Highlight Released In 2016 Year 2016 Batman VS Superman: Dawn of Justice Suicide Squad Captain America 3 X-Men Apocalypse Amazing Spider-Man 3 Deadpool Resident Evil: The Final Chapter The Divergent Series: Allegiant Part 1 Independence Day 2 Resurgence Teenage Mutant Ninja Turtles 2 London Has Fallen Kung Fu Panda 3 Ice Age 5 Frozen 2 Finding Dory Knights of the Round Table King Arthur *Please note that release dates are subject to change. LIFESTYLE Mega Blockbuster in Year 2016 are still attractive. Superhero-related, sequels or animated films are continuous released.
GROWTH POTENTIALS 1Q16 Blockbuster Highlight 1Q16 Deadpool (Fox) Batman V Superman : Dawn of Justice (WB) Kung Fu Panda 3 (Fox) Zoolander 2 (UIP) Pride and Prejudice and Zombie (Mongkol) The New Adventures of Aladin (MPIC) London Has Fallen (MPIC) Victor Frankenstein (Fox) 13 Hours: The Secret Soldiers of Benghazi (UIP) Joy (Fox) The Revenant (Fox) Steve Jobs (UIP) The Finest Hours (Disney) LIFESTYLE *Please note that release dates are subject to change.
GROWTH POTENTIALS LIFESTYLE Major is expert in online and interesting in online media. ID line: MajorFriends 15,107,000 Friends Mobile Application 5,050,000 Download Facebook: www.facebook.com/majorgroup 2,326,000 Fan page Twitter: MajorGroup 1,100,000 Followers Instagram: MajorFriends 201,000 Followers YouTube Channel: Major Trailers 70,000 Subscriber 18
GROWTH POTENTIALS Customers can book the ticket through many channels like E-Ticketing Machines, Mobile Application (ios, Android), Major Cineplex s website, also customers can pick up the tickets by using barcode at kiosks or receive the tickets at 7-11 (Convenience store) 87% of admission revenue comes from non box office (Data as of ) Those technology will come to replace manpower in box office areas. LIFESTYLE Online Booking: E-Ticketing, Mobile Application and Online ticketing E-Ticketing Machine 496 Units 19
MAJOR CINEPLEX GROUP LIFESTYLE Expansion Plan: 85 new screens additional (Total 600 Screens) No. Location Screens Opening Date 1 Emquartier (Opened 1Apr) 8 2 Lotus Nakornsrithammarat (Opend 10Apr) 4 2Q15 3 Central Rayong (Opend 27May) 8 (22 Screens) 4 Big C Nan (Opend 29May) 2 5 Big C Udonthani (Opened 9July) 4 6 Sahathai Suratthani (Opened 16July) 7 7 Vientiane Center, Laos (Opened 7August) 5 (34 Screens) 8 Lotus Suratthani (Opened 20August) 6 9 Central West Gate (Opened 28August) 12 10 Central Samui (Opened 9October) 3 11 Lotus Khon Kaen (Opened 15October) 5 12 Promanade (Opened 23October) 8 4Q15 13 Central East Ville (Ekamai - Ramindra) (29 Screens) 8 (Open 27November) 14 Diana (Hat Yai) (Open 25 December) 5 2Q12 2Q13 (Data as of November 2015) Remark* Screen postponed to 1Q16 1 Big C Ratburanah 4 2 Big C Ratchaburi 4 3 Lotus Yasothon 3 4 Big C Lampang 5 5 Lotus Nadee (Udon) 5
IFESTYLE INTERNATIONAL PROJECT
International Project India: PVR Cinemas LIFESTYLE Currently, PVR cinemas has got 477 Screens in 107 Locations. Major hold 3.95% of PVR Cinemas (PVRL) PVR Cinemas is now India's Largest Multiplex Chain.
International Project India: PVR BluO Currently, PVR BluO has got 125 Bowling lanes in 7 Locations. LIFESTYLE
International Project Cambodia LIFESTYLE Cambodia: Major is partnering Japan's Aeon Mall to operate a cinema complex in Cambodia's capital with 7 screens comprising five standard cinemas, one VIP cinema and one 4D cinema (1,560 seats) and 14 bowling lanes. The investment of 150 million baht will be made through a holding company of Major's international joint venture with a local firm. Major hold 70% of JV. This project opened since 30 th June 2014 The first year since Major Cineplex Cambodia opened, become the biggest cinema chain with 70% market share and 850,000 admissions has been sold.
International Project Laos LIFESTYLE Laos: Major will open a cinema complex called Major Platinum Cineplex By Huawei in Vientiane center with 5 screens (1,150 seats). The investment of 50 million baht will be made through a holding company of Major's international joint venture with Platinum Cineplex Ltd. (Local). Major hold 60% of JV. This project opened since 7 th Aug 2015. Also the second project in Laos partnering THE LAOS World Trade Centre (WTC) and Major Cineplex Group have signed a cooperation agreement to open a new cinema complex in Vientiane in the signing ceremony in Bangkok on July 24.
IFESTYLE LIFESTYLE Thank You