LIFESTYLE Quarterly Briefing MAJOR CINEPLEX GROUP PLC. Analyst Meeting Paragon Cineplex, 10th August 2015
Q15 QUARTERLY BRIEFING Financial Highlights Bt.Million growth Amt. % 1H14 1H15 growth Amt. % Revenue 2,643 100% 2,666 100% 23 1% Gross margin 1,027 39% 1,013 38% (14) -1% EBITDA 786 30% 871 33% 85 11% EBIT 584 22% 656 25% 72 12% Net Profit 446 17% 491 18% 45 10% 4,347 100% 4,415 100% 68 2% 1,615 37% 1,617 37% 2 0% 1,206 28% 1,373 31% 167 14% 810 19% 947 21% 137 17% 586 13% 689 16% 103 18% Revenue growth from Blockbuster movies, New branches, Cambodia( Opened 29Jun14) & price increased. Gross margin dropped mainly from Movie contents business. Net profit improved from ; Efficiency expenses management. Profit from divestment in SF. High profit from portfolio.
Bt.million Q15 QUARTERLY BRIEFING Net profit 446 +10% (45mb.) 491 444 430-3% (14mb.) Net profit Excl.gain on divest. in SF Revenue +1% (23mb.) 2,643 2,666 Gross margin dropped from Cinema : from costs in 9 branches expansion and 1 branch in Cambodia. Advertising : from more events and grand opening in Quatier Cineart. Bowling : from Ice skate business. Movie contents : from one time revenue in from sold movie license to Mono channel and MVD revenue dropped Margins variance Admissions 24% 21% (2%) Concessions 70% 70% Advertising services 87% 84% (2%) Bowling group 35% 31% (4%) Rentals & services 18% 21% 3% Movie Contents 24% 18% (6%) Consol 39% 38% (1%)
Q15 QUARTERLY BRIEFING Revenue Breakdown Revenue growth in main core businesses and also cinema in Cambodia. Revenue +1%(23mb.) 2,643 2,666 Admissions +7% 1,416 (96mb.) Concession 1,512 452 +1% (5mb.) Advertising 457 292 Movie content dropped from Film rights distribution and VCD/DVD sales. +17% (49mb.) 341 Bowling group -3% (-3mb.) Retails +3% (4mb.) 241 Movie Content -53% (-128mb.) Bt.million 113 110 129 133 113
Q15 QUARTERLY BRIEFING Revenue : Admissions Sale Admissions sale +7%(96mb.) 1,416 1,512 No.of Screens 413 479 520 489 542 +53 screens 2012 2013 2014 +53 new screens 9 branches(+46 screens) Cambodia(+7 screens) (opened 29 Jun14) Bt.million Excl.Complementary Guest Count & ATP 171 160 157 152 146 147 9.9 9.0 7.5 7.4 5.9 5.4 1Q14 3Q14 4Q14 1Q15 +13% (19bt.) -9% (0.9m) ATP increased from up price and manage price tiers and promotion in each locations.
Q15 QUARTERLY BRIEFING Revenue : Admissions Sale Admissions sale +7%(96mb.) 1,416 1,512 222 3 blockbuster films which generated more than 200MB for each movie. 167 163 150 106 102 436 269 267 128 Bt.million
Q15 QUARTERLY BRIEFING Revenue : Concession Concession sales slightly growth from variety of bucket sets less than. Concession sale +1% (5mb.) Maintain margin from cost control. Concession Sales %Concession margins 452 457 700 600 500 65% 70% 452 72% 70% 71% 70% 457 80% 70% 60% 400 300 200 238 324 319 266 50% 40% 100 30% Bt.million 0 1Q14 3Q14 4Q14 1Q15 Concession Sales %Concession margins 20%
Q15 QUARTERLY BRIEFING Revenue : Advertising Revenue growth from movie highlight, expansion screens and new flagship store. (Quatier Cineart) Advertising sale +17% (49mb.) 292 341 Gross margin dropped from more events and grand opening at Quatier Cineart. 0 0 0 0 0 0 0 0 0 0 87% 87% 86% 86% 87% 84% 212 292 349 274 256 341 9 8 8 7 7 6 6 5 Bt.million 0 1Q14 3Q14 4Q14 1Q15 Advertising revenue Margin 5
Advertising Business Advertising Revenue Mix Production 4% Event 14% Outdoor Media 12% Screen Advertising 49% Beside of Screen advertising, Major get what we called Engagement package, Agency can customize advertising package to match with their target group, interactive with customers by using Major s social media, cross promotion, event. Sponcership 21% Categories 1H15 1H14 Screen Advertising 49% 56% Sponcership 21% 20% Event 14% 15% Production(Royal Anthem) 4% 5% Outdoor Media(Digital Media, LED, etc.) 12% 4%
Advertising Business The Revenue Review: Ad-spending by Category LIFESTYLE Top 3 advertising spender in the last 3 Years (Data as of 1H15) No. 2013 2014 1H15 1 Food & Beverage Food & Beverage Automotive & Petrol 2 Automotive & Petrol Automotive & Petrol Food & Beverage 3 Electronic & Communication Electronic & Communication Electronic & Communication
Q15 QUARTERLY BRIEFING Revenue : Bowling Group Ice skate revenue & gross margin less than. Gross margin improve from 1Q15 by efficiency cost management (mainly from utility & rental cost). 300 Bowling group sale -3% (-3mb.) 250 200 150 100 50 35% 35% 37% 36% 111 113 127 129 28% 31% 104 110 4 3 2 1 Bt.million 113 110 0 1Q14 3Q14 4Q14 1Q15 Bowling group revenues margins 0
Q15 QUARTERLY BRIEFING Revenue : Retails Revenue increased from Center point at Ratchayothin and Mini mall at Aomyai and up price in Metropolis. Occupancy increase from 90.3% to 91.5% Gross margin variance from Utility cost. 22% 18% 19% 23% 24% 21% 30 20 10 0% Retails sale +3% 128 129 127 136 132 133-1 -2 (4mb.) -3-4 Bt.million 129 133 1Q14 3Q14 4Q14 1Q15 Rental&services Rev. margins -5
Q15 QUARTERLY BRIEFING Revenue : Movie Contents Revenue dropped from ; One time revenue in from sold movie license to Mono channel and M Channel sold to outsider. Movie content sale -53% (-128mb.) More highlight movies in effect to Film right distribution and sales of VCD/DVD dropped. 241 Bt.million 113
Q15 QUARTERLY BRIEFING B/S Snapshot Bt.million Dec 31,14 Jun 30,15 %chg Assets 13,932 13,990 0.4% Liabilities 7,546 7,408-1.8% Equity 6,387 6,582 3.1% Slightly decrease D/E ratio Dec 31,14 Jun 30,15 13,932 7,546 13,990 7,408 Net interest-bearing debts Equity Net D/E 0.70 0.62 0.58 0.56 LIABILITIES LIABILITIES 0.42 0.40 6,387 6,582 ASSETS EQUITY ASSETS EQUITY 2011 2012 2013 2014 1Q15
Q15 QUARTERLY BRIEFING Investments Portfolio vs. Interest-bearing debts Investments %Share (as of 4 Aug'15) Cost per Share Market value* Major's Cost Bt.million Gain(Loss) Bt.million Interest-bearing debts Jun 30,15 Siam Future 22.46% 2.49 2,195 995 1,199 MJLF 33.00% 10.00 1,427 1,089 338 MPIC 92.46% 1.67 2,008 2,003 5 PVRL 4.57% 120.45 818 229 590 Total 6,447 4,316 2,131 *% Share & Closing price on 6 Aug'15 13,990 Jun 30,15 7,408 Bank OD & ST loans 2,093 CP of LT borrowings 917 LT borrowings -471 Debentures 1,800 Total 4,340 Investment portfolio as of 6 August 2015: 92.46% in M Pictures Entertainment Plc. (MPIC) 22.46% in Siam Future Development Plc. (SF) 33.00% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF) 40.00% in ThaiTicketMajor Co., Ltd. 4.57% in PVR Limited (PVRL) 49.00% in PVR blu-o Entertainment Limited 70.00% in Major Platinum Cineplex Co.,ltd.(Cambodia) ASSETS EQUITY LIABILITIES 6,582
Q15 QUARTERLY BRIEFING Dividend payout Net Profit (Bt.Million) % Dividend Payout 2 nd dividend pay of Bt 0.55/share 1H12 1H13 1H14 1H15,500,300 60.24% 75.75% 71.02% 80.00% Net Profit (Bt.Million) 464.94 740.88 585.93 689.41 % Dividend Payout 73.58% 60.24% 75.75% 71.02% EPS (Bahts) 0.53 0.83 0.66 0.77,100 60.00% DPS (Bahts) 0.39 0.50 0.50 0.55 900 Closed price(bt.) as of 30 June 15.30 19.60 18.80 33.75 700 500 740.9 585.9 689.4 40.00% Dividend yield (%) 2.5% 2.6% 2.7% 1.6% Dividend payment is about Bt 490.66 million on September 4, 2015 300 20.00% 100-100 1H13 1H14 1H15 FY10 FY11 FY12 0.00% 16
IFESTYLE GROWTH POTENTIALS
GROWTH POTENTIALS Population and Screen comparison LIFESTYLE 1,400.0 40,158 1,200.0 1,000.0 800.0 24,607 600.0 400.0 11,139 200.0 963 715 969 2,281 874 232 225 - China India US Indonesia Philippines Thailand South Korea Malaysia Hong Kong Singapore 1,367.5 1,259.7 318.5 251.5 99.4 68.6 50.4 30.5 7.3 5.5 24,607 11,139 40,158 963 715 969 2,281 874 232 225 Population 2014e(million) Screens 2014e 45,000 40,000 Source: Marche Du Film, data as of 2014e
GROWTH POTENTIALS LIFESTYLE GDP per Capita and Average Ticket Price (ATP) Comparison 80,000 70,000 60,000 7.3 8.1 8.4 6.9 5.8 50,000 40,000 30,000 20,000 3.5 4.6 2.9 2.1 10,000 0.6 - Singapore US Hong Kong South Korea Malaysia China Thailand Indonesia Philippines India 56,109 54,678 40,303 28,739 11,062 7,572 5,550 3,404 2,913 1,626 7.3 8.1 8.4 6.9 3.5 5.8 4.6 2.9 2.1 0.6 GDP per capita 2014e (USD) Average ticket price 2014e (USD) Source: Marche Du Film, data as of 2014e
GROWTH POTENTIALS 3Q15 Blockbuster Highlight LIFESTYLE 3Q15 Mission: Impossible 5 (UIP) Ant-Man (Sony) Terminator: Genisys (UIP) Minions (UIP) The Fantastic Four (Warner) Maze Runner (Warner) Ted 2 (UIP) Inside Out (Sony) Transporter Refueled (Mongkol) Everest (UIP) Hitman : Agent 47 (Warner) Pixels (Sony) Thai Movie Freelance (GTH) Jo Watermellon (MPIC) *Please note that release dates are subject to change.
GROWTH POTENTIALS 4Q15 Blockbuster Highlight 4Q15 Bond 24: 007: Spectre (Sony) Star Wars: Episode VII (Sony) The Hunger Games: Mockingjay, Part 2 Victor Frankenstein (Warner) Fallen (MPIC) Attack on Titan: Part 2 (M Pictures) Crimson Peak (UIP) In the Heart of the Sea (Warner) Hotel Transylvania 2 (Sony) Doraemon the Movie 2015 The Good Dinosaur (Disney) Pan (Warner) Everest (UIP) Jem and the Holograms (UIP) The 33 (Warner) Thai Movie May Who (GTH) JYT (MPIC) *Please note that release dates are subject to change. LIFESTYLE
GROWTH POTENTIALS Blockbuster Highlight Released In 2016 Year 2016 Batman V 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 LIFESTYLE Major is expert in online and interesting in online media. ID line: MajorFriends 15,012,000 Friends Mobile Application 5,050,000 Download Facebook: www.facebook.com/majorgroup 2,321,000 Fan page Twitter: MajorGroup 1,000,000 Followers Instagram: MajorFriends 189,000 Followers YouTube Channel: Major Trailers 70,000 Subscriber 23
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) 85% 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 454 Units in 84 Branches 24
MAJOR CINEPLEX GROUP LIFESTYLE Expansion Plan: Major will open 101 screens in year 2015 No. Location Screens Opening Date 1 Emquartier (Opened 1Apr) 8 2 Lotus Nakornsrithammarat (Opend 10Apr) 4 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 5 3Q15 8 Central West Gate (Bang Yai) 12 (37 Screens) 9 Lotus Suratthani 6 10 Central Samui 3 11 Lotus Khon Kaen 5 12 Central East Ville (Ekamai - Ramindra) 8 13 Big C Ratburanah 4 14 Big C Ratchaburi 4 15 Promanade 8 16 Lotus Yasothon 3 17 Big C Lampang 5 2Q1218 Lotus 2Q13 Nadee (Udon) 5 4Q15 (37 Screens) (Data as of August 2015)
IFESTYLE INTERNATIONAL PROJECT
International Project India: PVR Cinemas LIFESTYLE Currently, PVR cinemas has got 474 Screens in 106 Locations. Major hold 4.57% 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 Cambodia: Major is partnering with local partner to operate a cinema complex located in Aeon Mall 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. LIFESTYLE 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.
LIFESTYLE Thank you LIFESTYLE