IFESTYLE Quarterly Briefing MAJOR CINEPLEX GROUP PLC. Analyst Meeting Paragon Cineplex, Siam Paragon : Nov 12 nd, 2012
contents The Bottom Line Financial Review Review of Revenue, Net profit B/S snapshot Growth Potentials 2
Snapshot Operation Strengthen movie variety by driving Indian movie Successfully launch side-line product Doraemon topper Brand Engagement: Bangkok Airways Blue Ribbon Screens More than a theatre Live football broadcast (Man Utd Vs Liverpool) Super Model International 2012 @ M Max Theatre Expansion & Investment EGV Seacon Bangkae Successful transformation to 200 th digital screens
81 193 215 233 218 195 293 195 215 The Bottom Line Trend Net profit -9%YoY Better cost control though YOY profit slowed down 1Q11 2Q11 4Q11 1Q12 2Q12 4
1,470 1,416 2,024 1,856 1,667 1,789 1,725 1,856 1,725 The Revenue Review Trend Revenue -7%YoY Revenue slightly drop had a stronger line up Revenue 2,500 2,000 1,500 1,000 500 0 1Q11 2Q11 4Q11 1Q12 2Q12 Revenue 5
125 113 130 124 195 193 224 218 215 233 1,856 1,725 845 966 The Revenue Review breakdown Revenue -7%YoY Cinema -13% Advertising shone though cinema drop Higher confidence in by-movie Concession: topper sustained revenue Concession -3% Advertising +8% Bowling Group -10% Retails -5% Film Distribution -1% 6
1Q11 2Q11 4Q11 1Q12 2Q12 845 966 880 809 1,000 1,326 1,191 1,123 1,063 1,856 1,725 218 224 The Revenue Review : Cinema Revenue -7%YoY Cinema Group -11% 2,000 Concession 1,800-3% 1,600 GBO -13% Margin compare 2Q12 drop from Film hire(48%) (2Q12 : 47%) Opened Seacon Bangkae(28 Sep12) Electricity up rate, high rental cost for central 1,400 1,200 1,000 800 600 400 200 0 31% 30% 26% 27% 28% 29% 26% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Cinema revenues & % Gross Margin 7
1Q11 2Q11 4Q11 1Q12 2Q12 845 966 1,856 1,725 218 224 The Revenue Review : Cinema(con t) Revenue -7%YoY Cinema Group Digital format drove revenue Still a growth platform in Y2013-11% Concession -3% 20.0 18.0 16.0 127 145 152 145 141 150 151 155 145 135 GBO -13% 14.0 12.0 10.0 125 115 105 8.0 6.0 4.0 2.0 5.8 7.7 6.6 4.7 5.9 6.1 5.8 95 85 75 65-55 Guest count & ATP(Net complementary) 8
1Q11 2Q11 4Q11 1Q12 2Q12 213 224 1,856 1,725 The Revenue Review : Advertising Revenue -7%YoY Automotive & Bank boosted revenue Toyota, Isuzu and Kbank Bangkok Airway s naming sponsor 400 91% 88% 87% 89% 87% 88% 87% 95% Advertising +8% 350 300 250 TalentOne 200 MPIC150 CineAd 100 130 189 213 194 152 212 224 90% 85% 80% 75% 70% 65% 60% 50 55% 0 50% Core Advertising revenue & % Gross margin 9
1Q11 2Q11 4Q11 1Q12 2Q12 125 113 1,856 1,725 The Revenue Review : Bowling Revenue -7%YoY Bowling Group -10% Revenue drop from 3 closed branches but better cost control 350 300 250 200 150 100 50 30% 107 31% 34% 118 125 19% 91 27% 101 38% 34% 115 113 45% 40% 35% 30% 25% 20% 15% 10% 5% 0 0% Bowling Group Revenue & % Gross margin 10
1Q11 2Q11 4Q11 1Q12 2Q12 130 124 1,856 1,725 The Revenue Review : Retail Revenue -7%YoY Retails -5% 200 180 160 140 120 100 80 60 40 20 0 A bit drop from CAWOW and Outdoor shop 37% 109 25% 23% 131 130 18% 114 24% 129 129 21% 20% 124 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Retails Revenue & % Gross margin 11
ASSETS EQUITY ASSETS EQUITY LIABILITIES LIABILITIES B/S Snapshot 'Jun 30, 12 Sep 30, 12 %chg Assets 11,053 11,194 1% Liabilities 4,836 5,045 4% Equity 6,217 6,149-1% JUN 30, 12 SEP 30, 12 11,053 4,836 11,194 5,045 6,217 6,149 18,000 18,000 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 Net D/E increased from debenture Bt 1000m Net interest-bearing debts Equity Net D/E Net interest-bearing debts Equity Net D/E 0.60 0.60 0.51 0.51 0.42 0.42 0.42 0.34 0.70 0.70 0.50 0.50 0.30 0.30 0.10 0.10 6,000-0.10-0.10 4,000 4,000 2,000 2,000 0 0 YE09 YE10 YE11 END OF -0.30-0.30-0.50 12-0.50
ASSETS EQUITY LIABILITIES Investments Portfolio vs. Interest-bearing debts Investments %Share Cost per Share Market value* Major's Cost Investment portfolio as of 6 th Nov 12: 66% in M Pictures Entertainment Plc. (MPIC) 23% in Siam Future Development Plc. (SF) 33% in Major Cineplex Lifestyle Leasehold Property Fund (MJLF) 40% in ThaiTicketMajor Co., Ltd. 45% in Major Kantana Broadcasting Co., Ltd. 9.9% in PVR Limited (PVRL) 49% in PVR blu-o Entertainment Limited 80% in Talent One Co.,ltd. 50% in K-Arena Gain(Loss) MJLF 33.0% 10.00 1,503 1,089 414 Siam Future 23.1% 2.21 2,039 597 1,442 MPIC 66.1% 1.55 593 657 (64) PVRL 9.9% 89.69 312 229 83 Total 4,448 2,572 1,875 *Closing price on Nov 6,2012 SEP 30, 12 11,053 4,836 11,194 5,045 6,217 6,149 Interest-bearing debts 2Q12 Bank OD & ST loans 831 CP of LT borrowings 874 LT borrowings 166 Debentures 1,000 Total 2,870 As of 13
IFESTYLE Quarterly Briefing GROWTH POTENTIALS
Q12 ROWTH QUARTERLY BRIEFING POTENTIALS Major Cineplex s Mission Build Movie Culture in Thailand like a Bollywood in Indian. Achieve sustainable growth in Movie & Entertainment industry. 600 screens in 2015 and 1,000 screens in 2020. Create Social Business Model. Go Asian 15
Q12 ROWTH QUARTERLY BRIEFING POTENTIALS FY13 Strategic Focus Continues expansion to growth areas. Driving same store growth by driving M-Generation card. Cost control by using technology to decrease manpower. Further expansion into India while exploring other International markets in South East Asia. 16
Strategic Investment: Lifestyle Mall Investment Rapid and economical expansion arm without zoning limitation Neighborhood Center / Stand-Alone Retail Store / Lifestyle center / Entertainment Center
ROWTH POTENTIALS FY13 Blockbuster Highlight 1Q13 HANSEL & GRETEL : WITCH HUNTERS A GOOD DAY TO DIE HARD (DIE HARD 5) G.I.JOE : RETALIATION Les Miserables 2Q13 IRON MAN 3 Oblivion FAST SIX (FAST & FURIOUS 6) After Earth 3Q13 The Long Ranger Man of Steel The Wolverine Pacific Rim Percy Jackson: Sea of Monsters 4Q13 The Hunger Games: Catching Fire Thor: The Dark World 47 Ronin The Hobbit: There and Back Again
Q12 ROWTH QUARTERLY BRIEFING POTENTIALS Capacities As of Nov 2012 FY10 FY11 FY12 FY13 Screens 361 383 36 119 BKK & Vicinity 252 259 IKEA 15 Bangyai 5 Bangkae 10 Emporium 2 8 TBA 5 Provincial 109 124 Ubonratchathani 2 Maesod 4 Additional screens Roi-Et 5 Bangna 1 Nakornsawan2 4 Additional screen Ampo Mall Ayutthaya 4 Udonthanee 4 Ubonratchathani 2 7 Additional screens Nongbualumphu 4 Nakornsrithamaraj 4 Suratthani 7 Satoon 5 Sakonnakhon 4 Prachinburi 4 Suphanburi 4 Songkla 5 Suratthani 2 5 Klaeng 4 Hadyai 10 Chiangmai 2 11 Samui 5 TBA 9 Lanes 504 506 180 16 BKK & Vicinity 386 386 IKEA 24 Provincial 94 94 Hadyai 16 International 24 Vasant Kunj 26 Bangalore 60 Pune 36 Mumbai 12 Raja Garden 22 Chandigarh 26
Q12 ROWTH QUARTERLY BRIEFING POTENTIALS M Generation Ratio M Gen Card : Regular & Student Student 54.1% Regular 45.9% Total 1,720,409 members 11.7 85.6 Loyalty card to customers 4.7 Customer insights & Direct marketing channel 3.1 3.3 for MAJOR to drive same-store growth 0.5 **0.5m members (Bt 28m) for Y2012 As of Nov 6 th 12 20
Thank You IFESTYLE Quarterly Briefing MAJOR CINEPLEX GROUP PLC.