CORPORATE PRESENTATION

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Transcription:

Agenda Page CORPORATE PRESENTATION December 2013 NASDAQ: BONA NASDAQ: BONA [ C L I E N T N A M E ]

THE FOLLOWING PRESENTATION HAS BEEN APPROVED FOR ALL AUDIENCES WHO UNDERTAND THE MEANING OF FORWARD-LOOKING STATEMENTS The information used in this presentation has been prepared by Bona Film Group Limited ( Bona or the Company ). This presentation is being provided for your information and may not be distributed, reproduced, re-distributed or passed on, directly or indirectly, to any person or published, in whole or in part, for any purpose. This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than statements of historical fact in this presentation are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The information contained in this presentation does not constitute or form part of, nor should it be construed as, an offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto. By listening to this presentation, you acknowledge that you will be solely responsible for your own assessment of the Company, including its business and market, and the market position, and that you will conduct your own analysis and due diligence and be solely responsible for forming your own view of the existing and future performance of the Company s business. 1

Bona Film Group Overview Snapshot NASDAQ Ticker: BONA Share Price (11/25/2013): US$5.25 Market Cap (11/25/2013): US$316 million 2012 Revenues: US$142.3 million Leading non-state-owned vertically-integrated film company in China Operates 21 movie theaters in 11 provinces Major Shareholders: Yu Dong 24.1%, News Corporation 19.9%, Fosun Group 6.4% 2

Chinese Film Industry Overview 3

The Chinese Box Office: A Booming Industry Chinese vs. North American box office (USD bn) Chinese Box Office North American Box Office $12.0 $10.0 7.7 8.4 9.2 9.2 9.4 8.8 9.2 9.7 9.6 10.6 10.6 10.2 10.8 10.8 10.8 10.8 $8.0 $6.0 $4.0 $2.0 $0.0 6.0 4.6 3.5 2.7 2.0 1.5 0.1 0.1 0.1 0.1 0.2 0.3 0.3 0.4 0.6 0.9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E China s Middle Class population to grow at 11% CAGR from 2011 to 2020 (250mm to 607mn) (4) China s entertainment market to growth at 17% CAGR from 2010 to 2015 ($59bn $138bn) (4) 28% CAGR in movie attendance growth in China from 2010 to 2012 (286mn 467mn) (5) 2013 (9-mos) China box office of US$2.7bn, up 35% Y/Y, domestic films making up 55% of box office receipts (1) China box office grew 30.2% YOY in 2012 (2) Estimated growth rate of China box office is approximately 30% per year from 2012-2015 (3) Estimated North American box offices from 2013 2015 are approximately consistent with 2012 (4) Erst & Young Spot on China report. (5) Source: EntGroup. 4

Tremendous Growth Potential Resilience Through Economic Cycles Significant Potential for Higher Film Penetration (1)(2) Year-Over-Year Growth Percentage For the year ended December 31, 2012 (3) China Box Office Movie Screens-China Screen Numbers-China 30.0% 13.7% 25.6% 30.6% 16.2% 16.2% 42.2% 13.3% 63.9% 32.5% 48.4% 28.4% 41.3% 30.2% Total box office (US$ bn) Box office per capita (US$) 2.7 1.4 2.4 19.2 3.8 1.2 3.0 (4) 10.8 1.3 31.0 26.2 3.9 3.9 13,118 ~17,000 Attendance per capita 0.7 1.2 Yea r 3,034 3,527 4,097 4,723 6,256 9,286 2006 2007 2008 2009 2010 2011 2012 2013E No. screens per million of population 18 13 (4) 26 42 122 Source: EntGroup, a PRC consulting and marketing research firm focused on media markets and a member of the ComInsight Group (1) Exchange rate is calculated as the average rate between 1/1/2012 12/31/2012 (2) Chinese statistics are for urban areas only and China box office refers to China mainland box office only, assuming Chinese urban population of 712 million in 2012 (3) North America statistics (4) India 2010 statistics 5

Bona The One-Stop Investment in the Chinese Film Market Vertically integrated business model takes full advantage of the box office growth The Chinese Film Industry Value Chain The Only Vertically Integrated Chinese Film Company in China Business Tax 3% Special Government Fund 5% Film Investment & Production Distributors 4% - 6% Producers 34% - 38% Movie Theaters 50% Talent Agency Film Distribution Theater Circuits 1% - 2% Movie Theaters 6

Number of Films Produced Continues to Rise Number of Films Produced in China Domestic Films Exhibited Domestic Films Produced Bona Films Huayi Films Enlight Films 745 406 456 526 558 231 80 88 91 154 16 16 4 4 5 10 12 16 15 7 6 7 7 8 14 2008 2009 2010 2011 2012 Source: EntGroup. Note: Bona, Huayi and Enlight film numbers refer to numbers of distributed films in the respective years. 7

Film Distribution A Track Record of Industry Leadership 2008 2012 Five Year Domestic Film Distribution Market Share Comparison 35% 32% 2008 2009 2010 2011 2012 20% 23% 21% 14% 15% 17% 14% 14% 7% 8% 8% 5% 3% 1% 7% 6% 6% 4% 7% 9% 6% 5% 4% 4% 4% 3% 2% 1% China Film Group ( * SOE) HuaXia Film Distribution ( * SOE) Shanghai Film Group ( * SOE) Source: EntGroup * SOE - State Owned Enterprise 8

Bona s Business Segments 9

Well Positioned in the New Industry Landscape Bona well positioned to benefit from the hour-glass industry landscape Hong Kong Productions Mainland China Productions Co-Productions Foreign Films Dominant position in Hong Kong director resources Strong emphasis to develop local directors; 4 projects lined up for 2014; a new priority going forward LOI with Fox and Universal and 5 ongoing projects; News Corp. strategic investment Track record of success; Red 2 and Broken City in 2013 pipeline Talent Agency business provides valuable resources to both ends Unparalleled Access to Content Fast-Expanding Audience Outreach Distribution business remains Bona s strength and enhances profitability Theatrical Exhibition Non-Theatrical Exhibition Foreign Distribution 21 Bona theaters to date, with ~40 expected in 2014 and potential acquisition plans Long-time partnerships with leading online platforms and new & traditional media Worked with 133 foreign distributors; potential to greatly expand in North America & Europe in addition to South East Asia 10

Extensive Creative Resources Unparalleled director / creative resources across geographies for upcoming projects Hong Kong Mainland China U.S. Derek Yee, The Third Master s Sword Tsui Hark, Tracks of the Snowy Forrest Wai Keung Lau, From Vegas to Macau Liwen Ma, The A Test Baoping Cao, Sunspot Jiashang Chen, upcoming project 4 ongoing co-production projects with Fox International Productions and 1 with Universal Pictures & Working Title Films: Disclosed projects include Moscow Mission and one romantic comedy Potential to produce English language films using Bona s existing film library Jing Wong, From Vegas to Macau Jianxin Huang, The White-Haired Witch Projects with other US studios currently under discussion 11

Access to Content Provides Tremendous Revenue Potential Merchandise Sequels Books Games Parks Films with Over 100 titles and adding ~10+ titles / year Additional Potential Domestic Box Office Domestic Copyright Foreign Box Office TV Series Chinese box office expected to grow at 30% each year New devices such as SuperTV and BesTV bringing content into homes New distribution channels and media platforms increasingly demand content Huge potential for Chinese language films abroad Satellite and online sales provide rounds of revenue streams 12

Strong Pipeline for 2013 Significantly improved pipeline and planned release windows in 2013 compared to 2012 Chinese New Year Winter Break International Women s Day International Children s Day Summer Vacation National Day Holiday Christmas Season 2014 New Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar From Vegas to Macau VS Sunspot Note: Schedule s temporary and up to change. 13

Movie Theater National Expansion Footprint National Footprint Theaters: 21 open; 19 planned Screens (12/31/2013): 173 Planned theater openings (1H13): 5 Theaters Expected by 12/31/14: 40 Profitable Theaters New Theaters Newly Signed Projects Geographic Diversification 11 out of 34 Provinces Modern Asset Base 8 Screens / Theater Avg. 100% Stadium Seating Avg. Seat Capacity ~1,100-1,200 Baotou Beijing Taiyuan Tianjin Shijiazhuang Zibo Xi An Suzhou Nanjing Shanghai Heifei Wuhan Ningbo Fenghua Chongqing Changsha Xiamen 8 new locations that started construction in 2013, including Zibo, Taiyuan, Shanghai, Ningbo, Shenzhen, Wuhan, Sanya and Liuzhou Dongguan Liuzhou Shenzhen Sanya 14

Theater Coverage Top 15 Markets in China Significant Market Leadership In Our Top 15 Markets Industry BONA Province Market Share (Opened + Planned) 1 Guangdong 14% 3+4 2 Beijing 10% 5 3 Shanghai 8% 2+1 Chinese Box Office by Geography Others 26% 4 Jiangsu 8% 1+2 5 Zhejiang 8% 1+3 6 Sichuan 5% 0+2 7 Hubei 5% 0+1 8 Chongqing 3% 1+1 9 Shandong 3% 0+1 10 Shaanxi 2% 2 11 Hunan 2% 1+1 Top 15 Provinces 74% 12 Tianjin 2% 2 13 Anhui 2% 1+2 14 Hebei 1% 1 15 Shanxi 1% 0+1 Bona has and plans to establish theater coverage in 15 provinces which account for 74% of China s total box office receipts 15

Talent Agency Important Growth Opportunity Cheng Haofeng Liu Zhibing Gao Hu Lu Siyi Lan Zhenglong Wu Chenjun Yuan Quan He Jiayi Fan Yichen * Yang Yuyu Wang Zizi Qu Gaowei Qi Ji Li Fei er Meng Qian Huang Yi Li Xunru Zhang Junning 16

Financial Overview 17

Financial Overview: 5-Year P&L Business Diversification Expected to Support Steadier Future Growth (USD MM) Revenue Growth% 2008 23.4 N/A 2010 38.4 +64% 2010 52.8 +38% 2011 126.2 +139% 2012 142.3 +13% Net Income (Loss) Growth% 0.4 N/A 5.5 +1,275% (4.2) 14.6 +248% (1.6) EBITDA % Rev 1.6 7% 6.0 16% (3.5) (7% ) 18.0 14% 4.3 3% Adj. Net Income (Non-GAAP) Growth% 2.7 N/A 5.4 100% 10.8 100% 18.2 69% 3.2 (82%) Adj. EBITDA (Non-GAAP) % Rev 3.9 17% 5.9 15% 11.5 22% 21.6 17% 9.1 6% 2012 performance impacted by release timing and performance of key films; rebound expected in 2013 18

Segment Gross Profit and Margin Segment Gross Profit Breakdown (US$ mm) and Margin (%) Film distribution Film investment and production 43.8% 35.9% 36.2% 21.8% 20.8% 13.2% 8.7% 4.8% 3.3 3.5 2.0 4.9 6.7 3.3 6.4 0.8 2008 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 % of Seg, Profit 68.8% 77.8% 56.2% 62.1% 45.1% 38.3% 15.4% 30.9% % of Seg, Profit 31.2% 20.4 % 16.5% 11.2% 11.5% 5.5% 21.1% 24.7% 56.6% 57.2% 57.8% Movie theater N/A 53.1% N/A 6.0 56.1% 14.6 23.6 57.4% 8.0 9.7 8.7 Talent agency N/A 0.3 1.0 1.2 0.6 0.2 0.2 0.2 2008 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 2008 2009 2010 2011 2012 1Q 2013 2Q 2013 3Q 2013 % of Seg, Profit N/A N/A 23.5% 24.6% 42.2% 55.1% 62.5% 43.5% % of Seg, Profit N/A 1.8% 3.8% 2.1% 1.1% 1.1% 1.0% 0.9% Source: Audited financial statements from 2008 to 2012. 19

Balance Sheet Review Balance Sheet Overview Diversified Debt Structure Maximizes Flexibility Total Amount Due by Dec 31, 2013 Due by Dec 31, 2014 Bank Borrowing US$73.5 M US$50.6 M US$22.9 M Other Borrowing US$7.7 M US$7.7 M -- (USD mm) 30-Sep-13 30-Jun-13 31-Mar-13 31-Dec-12 Cash & Cash Equivalents* 21.4 28.9 29.4 23.2 Bank Borrowing 73.5 56.5 36.2 30.6 Other Borrowing 7.7 6.3 7.9 8.7 Total Debt 81.2 62.8 44.1 39.3 Net Debt 59.8 33.9 14.7 16.1 LTM Adjusted EBITDA 11.0 8.5 7.2 9.1 Total Assets 400.8 336.4 322.8 316.6 Total Liabilities 200.4 142.2 131.8 126.9 Debt Asset ratio 0.5 0.4 0.4 0.4 *Note: Does not include restricted cash. 20

Seasoned Senior Management Team Leaders in Film and Entertainment in China and Internationally 21

Key Takeaways: The Bona Advantage Significant market potential and opportunities Production Integrated business model creates substantial synergies Theater Network Distribution Unparalleled creative / production resources across geographies 22

Agenda Page THANK YOU For Additional Information, Please Contact: [ C L I E N T N A M E ] Lingzi Gui Brandi Floberg / Lee Roth Bona Film Group Limited The Piacente Group Tel: + 86-10-5928-3663 212-481-2050 Email: ir@bonafilm.cn Email: bona@tpg-ir.com