IFESTYLE Quarterly Briefing MAJOR CINEPLEX GROUP PLC. Analyst Meeting Paragon Cineplex, Siam Paragon: November 7 th, 2014
Q14 QUARTERLY BRIEFING LIFESTYLE Financial Highlights Revenue growth from highlight movies, new branches and up price. Gross margin and EBIT improved from efficient cost management. Divestment from SF and PVRL in, net amount 63MB. Bt.Million growth Amt. % Revenue 1,756 100% 2,153 100% 397 23% Gross margin 606 35% 803 37% 197 32% EBITDA 463 26% 620 29% 157 34% EBIT 279 16% 412 19% 133 48% Net Profit 201 11% 293 14% 92 46% Net Profit (excl.divest. in SF&PVRL) 201 11% 230 11% 29 15%
1,756 2,153 Q14 QUARTERLY BRIEFING LIFESTYLE Net profit Bt.million Net Profit +46%YoY 293 46% Net profit growth from Expansion 9 branches in cinema BU. Strong Advertising revenue Investment 1,800 in Cambodia +15% Excl.gain on divest. in SF &PVRL 63MB. 1,800 1,600 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 - - 35% 35% 606 606 37% 37% 803 803 50% 50% 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Revenue & %Gross margin
104 118 127 127 126 156 256 324 287 1,756 865 349 1,070 2,153 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue Break down Bt.million Revenue +23%YoY Revenue growth in all business units Admissions +24% Concession +26% Advertising +21% Bowling group +22% Retails +8% Movie Content +24%
865 865 1,070 1,070 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Admissions Bt.million Admissions sale +24%YoY Top 3 Movies (Bt.million) 112 81 79 Guest Count & ATP +1bt. +21%yoy - Q Q Q Q Q Q Q Guest Count(million) ATP
256 256 324 324 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Concession Bt.million Concession +26%YoY Most of revenue growth from New branch (+20%) Concessions sales %Concessions-to-Gross Box Office 600 500 29.0% 28.8% 30.4% 29.8% 29.6% 30.6% 29.4% 35.0% 30.0% 400 300 200 237 415 256 267 238 429 324 25.0% 20.0% 15.0% 10.0% 100 5.0% 0 0.0% 1Q13 2Q13 4Q13 1Q14 2Q14 Concessions sales %Concessions-to-Gross Box Office
287 287 349 349 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Advertising Bt.million Advertising +21%YoY Strong growth mainly from Movie package and more screens. Slightly decrease gross margin from invest in Digital screens. 500 450 400 350 300 250 200 150 100 50 0 4Q13 1Q14 2Q14 Advertising rev. (Bt.million) & %Gross margin
104 104 104 127 127 1Q13 2Q13 4Q13 1Q14 2Q14 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Bowling Group Bt.million Bowling +22%YoY Revenue growth from new branches and increasing game fee 68 Avg. Game Fee (Bt.) 70 75 80 80 75 80 SS NB %GM Revenue (Bt.million) 200 150 30% 33% 40% 43% 35% 35% 37% 40% 30% 100 20% 50 - (50) 89 95 105 107 88 100 107 1Q13 2Q13 4Q13 1Q14 2Q14 SS NB %GM 10% 0% -10% -20%
1Q13 2Q13 4Q13 1Q14 2Q14 118 127 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Retails Bt.million Retails +8%YoY %Occupancy increase from WE Fitness at Sukhumvit location and Center point at Ratchayothin location. 85% 83% 84% 86% 90% 90% 90%
126 156 156 Q14 QUARTERLY BRIEFING LIFESTYLE Revenue : Movie Content Bt.million Movie Content +24%YoY 20mb from The secret of sassy women Revenue increased from distribution home (DVD) Highlight movie such as Begin Again, Expendable 3, November man
Financial Review Revenue Breakdown by segment LIFESTYLE Bowling&karaoke Business 6% Advertising Business 16% Rental&Service Business 6% Movie Content 7% Cinema Business 65% Y12 Y13 Y12 Y13 Major Group s Revenue Breakdown; 65% Cinema Business (Admission sales + Concession sales) 16% Advertising Business 6% Rental & Service Business 6% Bowling & Karaoke Business 7% Movie Content (Content Provider & Local Production house) Data as of Major Group s Revenue Breakdown Cinema Business (Admission sales + Concession sales) 65% 64% Advertising Business 16% 16% Rental & Service Business 6% 7% Bowling & Karaoke Business 6% 6% Movie Content (Content Provider & Local Production 7% 7% Total Revenue 100% 100%
256 267 238 212 104 111 113 287 276 292 130 127 118 120 128 129 127 324 349 429 118 120 128 129 127 865 924 840 1,070 1,440 Q14 QUARTERLY BRIEFING LIFESTYLE Core Business margin Gross Margins D Admissions 14% 17% 3% Concessions 67% 72% 5% Advertising services 87% 86% -1% Bowling group 40% 37% -3% Rentals & services 16% 19% 3% Consolidate 35% 37% 3% 300 250 200 150 100 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200-14% 15% 18% 25% 16% 16% Admissions 17% 4Q13 1Q14 2Q14 25% 20% 15% 22% 10% 5% 0% -5% -10% 18% 19% Revenue Margin 00 00 00 00 00 00-70% 72% 67% 67% 66% 4Q13 1Q14 2Q14 600 75% 70% 65% 500 60% 55% 50% 400 45% 40% 300 35% 30% 25% 200 20% 5% 10% 15% 100 0% - 87% 87% 87% 87% 86% 4Q13 1Q14 2Q14 90% 300 85% 250 80% 200 75% 70% 150 65% 100 60% 50 55% 50% 40% 43% 35% 35% 37% Concession Advertising Bowling group Retails - 50-4Q13 1Q14 2Q14 60% 300 50% 250 40% 200 30% 150 20% 100 10% 50 0% - 16% 16% 22% 18% 19% 4Q13 1Q14 2Q14 30% 20% 10% 4Q13 1Q14 2Q14 0% -10% -20%
ASSETS EQUITY ASSETS EQUITY LIABILITIES LIABILITIES Q14 QUARTERLY BRIEFING LIFESTYLE B/S Snapshot Bt.million Dec 31,13 Sep 30,14 %chg Assets 13,630 13,616 0% Liabilities 7,530 7,413-2% Equity 6,099 6,203 2% Dec 31,13 Sep 30,14 13,630 7,530 13,616 7,413 6,099 6,203 Strong D/E though rapid expansion Equity Net interest-bearing debts Net D/E Net interest-bearing debts Equity Net D/E 18,000 16,000 18,000 0.60 14,000 0.45 16,000 12,000 0.37 14,000 10,000 12,000 8,000 10,000 6,000 8,000 4,000 6,000 2,000 0 4,000 2,000 0.90 0.71 0.70 0.67 0.68 0.59 0.70 0.70 0.51 0.50 0.42 0.50 0.34 0.30 0.30 0.10 0.10-0.10-0.10-0.30 1Q13 2Q13 4Q13 1Q14 2Q14-0.50-0.30
t with relationship ID rid2 was not found in the file. ASSETS Q14 QUARTERLY BRIEFING LIFESTYLE Investments Portfolio vs. Interest-bearing debts Investments %Share Cost per Share Market value* Major's Cost Bt.million Gain(Loss) Siam Future 23.01% 2.83 2,283 964 1,319 MJLF 33.00% 10.00 1,339 1,089 250 MPIC 92.49% 1.67 2,236 2,003 233 PVRL 5.82% 120.45 818 289 529 Total 6,676 4,345 2,331 *% Share as of Oct14 & Closing price on Nov 5,2014 Sep 30,14 13,630 7,530 13,616 7,413 Bt.million Interest-bearing debts Bank OD & ST loans 2,220 CP of LT borrowings 115 LT borrowings 417 Debentures 1,800 Total 4,552 Investment portfolio as of October 2014: 92.49% in M Pictures Entertainment Plc. (MPIC) 23.01% in Siam Future Development Plc. (SF) 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF) 40.00% in ThaiTicketMajor Co., Ltd. 5.82% in PVR Limited (PVRL) 49.00% in PVR blu-o Entertainment Limited 50.00% in K-ARENA 70.00% in Major Platinum Cineplex Co.,ltd.(Cambodia) EQUITY LIABILITIES 6,099 6,203
IFESTYLE GROWTH POTENTIALS
GROWTH POTENTIALS 2015 Blockbuster Highlight Year 2015 The Avengers: Age of Ultron Fast & Furious 7 Man of Steel 2: Superman / Batman Fantastic Four Reboot Terminator: Genisys James Bond 24 Mission Impossible 5 Jurassic World The Hunger Games: Mocking Jay Part II Seventh Son Taken 3 Into the Woods Jupiter Ascending Kingsman: The Secret Service Ant - Man Finding Dory Assassin's Creed Kung Fu Panda 3 Star War VII Ted 2 Inside Out Inferno Cinderella World of Warcraft *Please note that release dates are subject to change. LIFESTYLE Mega Blockbuster in Year 2015 are still attractive. Superhero-related, sequels and animated films are continuous released.
GROWTH POTENTIALS M Generation: Member Card LIFESTYLE We are the only movie theaters in the world which collected customer database. Also adding value by using social media such as Online E -ticketing, Facebook, Twitter, Line, Mobile application, etc. Mgen Regular Mgen Student Mgen Freedom (60Yrs Old) Mgen First (Invitation Only) Ratio M Gen Card : Regular & Student Total 2,516,848 members (As of October 2014) Student Regular Mgen Kids Mgen IMAX 58.9% 41.1% 17
GROWTH POTENTIALS Major Group: 2,278,000 Members LIFESTYLE Major is expert in online and interesting in online media. Major Friends: 10,495,000 Members Instagram: 71,000 Members Twitter Major Group: 761,000 Followers 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) 60% - 70% 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 401 Units in 72 Branches Major Movie plus Application 3,300,000 Members 19
MAJOR CINEPLEX GROUP LIFESTYLE Expansion Plan Year 2014 (Data as of October 2014) Item Location Screens Opening Date 1 Lotus: Songkhla 5 1Q14 2 Lotus: Suphanburi 4 (11 Screens) 3 Big C: Nakorn Pa Nom 2 4 Big C: Prachinburi 2 2Q14 5 Lotus Bangyai 8 6 Robinson Roi Et 4 7 Robinson Samutprakarn 5 8 Pang Nga (Local Developer) 3 9 Robinson Mukdahan 4 37 4Q14 (16 Screens) Remark* Emquatier 8 Postpone to 1Q15 2Q12 International Project: Cambodia Aeon Mall Phnom Penh 10 2Q13 Bowling 13 lanes 7 2Q14
IFESTYLE INTERNATIONAL PROJECT
International Project India: PVR Cinemas LIFESTYLE Currently, PVR cinemas has got 454 screens in 43 cities and will be reach by 500 screens by year 2015. Major hold 5.82% of PVR Cinemas (PVRL) PVR Cinemas is now India's Largest Multiplex Chain.
International Project India: PVR BluO LIFESTYLE Currently, PVR BluO has got 110 Bowling lanes in 5 Locations and 78 Bowling lanes will be added in year 2013-2014.
International Project Cambodia & Other Countries LIFESTYLE Cambodia: Major is partnering Japan's Aeon Mall to operate a cinema complex in Cambodia's capital with 7 screens 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 Other Opportunities in South East Asia: - CLMV is further regional expansion. - JV with strong local partner. - Conditions must be reasonable
IFESTYLE LIFESTYLE MAJOR CINEPLEX GROUP PLC. Thank You